- South Korea’s major telecom and financial giants become shareholders in BitGo.
- Hana acquires 25% and SK Telecom secures 10% of BitGo’s shares.
- BitGo is currently obtaining a license as a VASP in South Korea.
South Korea’s major telecom and financial giants, SK Telecom and Hana Financial Group, have become significant shareholders in BitGo. This was announced by Mike Belshe, BitGo CEO during the Korea Blockchain Week 2024 event in Seoul.
Hana Financial Group, one of the largest financial institutions in South Korea, acquired a 25% stake in BitGo Korea. Meanwhile, SK Telecom, the country’s leading telecommunications provider, secured a 10% share.
Hana Financial Group intends to enhance the crypto ecosystem by providing secure and reliable custody services through BitGo Korea. On the other hand, SK Telecom plans to leverage its expertise in user authentication, security, and identity verification to improve the accessibility of BitGo’s services for Korean clients.
BitGo Korea was established as a joint venture between BitGo and Hana Bank earlier this year. It followed an initial partnership that began in September last year. The company is currently working towards obtaining a license as a virtual asset service provider (VASP) in South Korea.
Strategic Investments by Hana Financial and SK Telecom
Since its inception in 2013, BitGo has managed approximately $70B in assets under custody facilitating around 20% of on-chain Bitcoin transactions. This partnership comes at a time when the South Korean crypto industry is facing regulatory scrutiny.
BitGo’s recent legal victory in the Delaware Supreme Court overturned a $100M lawsuit against Galaxy Digital. The lawsuit was related to a failed acquisition deal between BitGo and Galaxy, which was terminated in August 2022 due to alleged breaches of contract.
The involvement of Hana Financial Group and SK Telecom as strategic investors in BitGo Korea is a significant step forward for the South Korean crypto market.
By combining their strengths in finance and telecommunications with BitGo’s expertise in digital assets, these companies lead the way in the adoption of cryptocurrency in South Korea, paving the way for further growth and innovation.
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