Jeonbuk Bank has become the first bank in South Korea to offer won-denominated loans backed by bitcoin, according to reports. 

The subsidiary of JB Financial Group has started offering the loans, according to exclusive Monday reporting by the country’s Edaily paper. 

For now, the product is limited to corporate customers raising working capital, and bitcoin is the only eligible collateral. The bank said it may expand the service depending on regulatory changes and market demand, the report added. 

Jeonbuk Bank won’t own or control the bitcoin itself. The collateral is held by a specialized custodian, limited to virtual asset service providers registered under…

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