BitGo expands into South Korean market with investments from SK Telecom and Hanwha Group

The U.S. cryptocurrency custodian company BitGo announced that South Korea's largest mobile carrier SK Telecom and Hana Financial Group have become the major shareholders of its South Korean subsidiary.

SK Telecom and Hana Financial Group Invest in BitGo

According to The Block, BitGo CEO Mike Belsh announced on Tuesday at the 2024 Korea Blockchain Week (KBW) event in Seoul that Hana Financial has acquired 25% of BitGo Korea, while SK Telecom has acquired 10%. BitGo's Korean subsidiary is a joint venture established earlier this year with Hana Bank, a subsidiary of Hana Financial Group.

Through the investments of these two major South Korean companies, BitGo is expected to expand its influence in Korea. The financial background of Hana Financial Group can utilize BitGo's cryptocurrency custody services, while SK Telecom can provide expertise in user authentication, security, and identity verification, making it easier for customers to access BitGo's services. This move is expected to lay the foundation for the institutionalization of cryptocurrency in South Korea.

BitGo is Applying for a Virtual Asset Service Provider License in Korea

Founded in 2013, BitGo obtained a trust license from the New York Department of Financial Services (NYDFS) in 2021. It also holds licenses from the German financial regulatory authority BaFin and the Monetary Authority of Singapore (MAS) as a major payment institution (MPI). These licenses allow BitGo to legally provide digital asset custody and trading services in multiple jurisdictions.

BitGo Korea is currently in the process of applying for a Virtual Asset Service Provider license in South Korea. BitGo states that it currently custodies around $70 billion in assets, and approximately 20% of Bitcoin transactions on the blockchain are conducted through BitGo's infrastructure.

Investments by Two Major South Korean Companies Demonstrate Stable Operations

In 2021, Galaxy Digital announced a $1.2 billion acquisition deal with BitGo, which ultimately did not materialize. BitGo recently decided to suddenly withdraw its WBTC product, raising concerns about potential financial difficulties within BitGo.

With the recent partnership with two major South Korean companies, BitGo not only signals its ambition to enter the South Korean market but also aims to prove its operational stability and reassure stakeholders about its financial health.