South Korea just got its first traditional bank loans backed by bitcoin
Summary
Jeonbuk Bank has launched South Korea’s first bitcoin-backed loans for corporate clients, issuing Korean won for business operating costs. One loan has already been made. Bitcoin is held by a registered crypto custodian, not the bank, and defaults could lead to a court-ordered sale of the collateral under revised enforcement rules effective Oct. 1. The bank chose bitcoin after stress-testing its liquidity during sharp price declines. Rates, loan limits and collateral terms have not been disclosed; the service may expand depending on demand and regulation.
