South Korea · Bitcoin · CoinDesk
The South Korean bank, a unit of JB Financial Group, will issue loans in the country’s fiat currency
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A Jeonbuk Bank official confirmed to local outlet Jaekyung Ilbo that a loan has already been executed, but declined to name the borrower.
Key facts
- Diversified RWA stablecoins sustain 5-7% yield from real credit as crypto funding compresses to ~4%
- Only bitcoin BTC $82,292.69 can be used as collateral for these loans for the time
- The process draws on revised Civil Enforcement Rules that took effect Oct. 1, per the local news outlet
- A Jeonbuk Bank official confirmed to local outlet Jaekyung Ilbo that a loan has already been executed, but declined to name the borrower
Summary
Jeonbuk Bank became South Korea's first lender to offer bitcoin-backed loans, available exclusively to corporate clients. Loans use third-party custodians for bitcoin holdings and rely on court-ordered sales if borrowers default. The product could expand crypto collateral adoption across South Korea's banking industry under existing laws. Jeonbuk Bank has started offering bitcoin-backed loans to corporate clients, becoming the country's first bank to let firms borrow cash against their crypto holdings. The South Korean bank, a unit of JB Financial Group, will issue loans in the country’s fiat currency, the Korean won, with proceeds limited to business operating costs, according to local news outlet Edaily.