˗ˋˏ🚨ˎˊ˗ 🏛️💰⊹🥡⟡🥢 SOUTH KOREAN BANK NOW LENDS MONEY AGAINST ₿ITCOIN✔️
₿itcoin▸$BTC ▸has just taken another step into the traditional banking system.
South Korea’s Jeonbuk Bank has started offering loans in won to businesses using↴
🔥 BITCOIN AS COLLATERAL
According to local media, this is the first bank loan of its kind in the country. The product is being launched on a limited basis, for corporate clients only and for working capital.
But there’s an important difference↴
➥ THE BANK DOESN’T HOLD THE $BTC
The coins are held by a registered specialist custodian. Jeonbuk has rights to the collateral, but doesn’t hold Bitcoin directly in its own wallet.
The structure is basically↴
➥ COMPANY → BTC AS COLLATERAL → BANK → LOAN IN WON
What if the price of Bitcoin falls?
The bank says it has conducted stress tests and uses an index based on prices from several exchanges.
However, the following details have not yet been published↴
Initial LTV • margin call • deadline to top up collateral • liquidation threshold.
In the event of a default, new civil enforcement rules allow rights to virtual assets to be seized and sold through the courts. The bank intends to recover the money from the sale, not receive Bitcoin directly.
⚠️ Therefore:
➥ $BTC AS COLLATERAL ≠ THE BANK BUYING BITCOIN
But this is a significant development: Bitcoin is starting to be treated as collateral in traditional bank lending.
IS BITCOIN BECOMING A NEW FORM OF FINANCIAL COLLATERAL FOR BANKS?
#Bitcoin❗ #BTC突破7万大关 #CryptoNews
₿itcoin▸$BTC ▸has just taken another step into the traditional banking system.
South Korea’s Jeonbuk Bank has started offering loans in won to businesses using↴
🔥 BITCOIN AS COLLATERAL
According to local media, this is the first bank loan of its kind in the country. The product is being launched on a limited basis, for corporate clients only and for working capital.
But there’s an important difference↴
➥ THE BANK DOESN’T HOLD THE $BTC
The coins are held by a registered specialist custodian. Jeonbuk has rights to the collateral, but doesn’t hold Bitcoin directly in its own wallet.
The structure is basically↴
➥ COMPANY → BTC AS COLLATERAL → BANK → LOAN IN WON
What if the price of Bitcoin falls?
The bank says it has conducted stress tests and uses an index based on prices from several exchanges.
However, the following details have not yet been published↴
Initial LTV • margin call • deadline to top up collateral • liquidation threshold.
In the event of a default, new civil enforcement rules allow rights to virtual assets to be seized and sold through the courts. The bank intends to recover the money from the sale, not receive Bitcoin directly.
⚠️ Therefore:
➥ $BTC AS COLLATERAL ≠ THE BANK BUYING BITCOIN
But this is a significant development: Bitcoin is starting to be treated as collateral in traditional bank lending.
IS BITCOIN BECOMING A NEW FORM OF FINANCIAL COLLATERAL FOR BANKS?
#Bitcoin❗ #BTC突破7万大关 #CryptoNews