Zionbook Bank has begun offering bitcoin-backed loans to corporate customers, with a third-party custodian using the cryptocurrency as collateral.
South Korea’s Jeonbuk Bank, a subsidiary of JB Financial Group, has reportedly begun issuing bitcoin-backed loans to its corporate customers.
Local outlet EDaily Report On Monday JionBook Bank became the first commercial bank in the country to accept Bitcoin (BTC) as collateral. Bank management is limited to services for businesses seeking capital, when a special guardian BTC is used as collateral.
The lending arrangement follows amendments to South Korea’s civil enforcement regulations that took effect on October 1 According to Before the Supreme Court, the rules set out the procedures for confiscation and settlement of virtual asset claims In case of default, the bank can recover its funds through a court-ordered sale.
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