Jeonbuk Bank Launches Bitcoin-Backed Loans for Corporates
- Jeonbuk Bank is the first South Korean bank to offer loans backed by bitcoin.
- Loans are issued in the Korean won and are intended for business operating costs.
- Only bitcoin (currently valued at $84,155.39) can be used as collateral.
- A registered crypto service provider will hold the bitcoin in custody while loans are issued.
- If a borrower defaults, Jeonbuk Bank can recover funds through a court-ordered sale of the bitcoin.
- Revised Civil Enforcement Rules effective October 1 outline legal steps for seizing digital assets.
The introduction of bitcoin-backed loans marks a significant step in integrating cryptocurrency into traditional finance in South Korea, allowing businesses to leverage their crypto holdings for operational funding.
With only bitcoin accepted as collateral, Jeonbuk Bank’s initiative could reshape how companies access capital using digital assets.(Source)
