Update
South Korean Bank Launches Bitcoin-Backed Corporate Loans
Jeonbuk Bank, a South Korean bank, has launched Bitcoin-backed business loans for corporate customers. The loans use Bitcoin held by a third-party custodian as collateral. This initiative marks South Korea's first bank-issued won loans backed by Bitcoin. The bank will manage the custody of the Bitcoin through a qualified virtual asset service provider. The move raises questions about the valuation of Bitcoin as collateral if its price falls. The loans are designed to streamline business financing processes for corporate borrowers, allowing them to use cryptocurrency as collateral for traditional business financing needs.