South Korea Gets First Traditional Bank Loans Backed by Bitcoin
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
