South Korea Gets First Traditional Bank Loans Backed by Bitcoin
Edited by Steinar Vigdel Kolnes, Editor, Oslo
South Korea has introduced its first traditional bank loans secured by bitcoin, with third-party custody and court-ordered sales in the event of default.
South Korea has seen its first bitcoin-backed loans from traditional banks, according to CoinDesk. The loans allow borrowers to use bitcoin as collateral.
Third-party custodians hold the bitcoin pledged against the loans, separating custody of the assets from the borrowing arrangement.
If a borrower defaults, the loans rely on court-ordered sales of the bitcoin collateral. The report did not identify the banks involved or provide lending terms.
Source: CoinDesk
