South Korean bank launches Bitcoin-backed business loans: Report

Jeonbuk Bank reportedly began offering Bitcoin-backed loans to corporate customers, with a third-party custodian holding the cryptocurrency used as collateral. South Korea’s Jeonbuk Bank, a subsidiary of JB Financial Group, reportedly started issuing Bitcoin-backed loans to its corporate customers. Local outlet EDaily reported Monday that Jeonbuk Bank became the country’s first commercial bank to accept Bitcoin (BTC) as collateral for won-denominated lending. The bank is reportedly limiting the service to businesses seeking operational capital, while a specialized custodian holds the BTC used as collateral. The lending arrangement follows amendments to South Korea’s Civil Enforcement Rules that took effect on Oct.