By Isaac • October 12, 2026 7:16 am •
Bitcoin-backed lending has moved into a new corner of traditional finance.
South Korea’s Jeonbuk Bank has started making won-denominated loans to corporate customers that pledge Bitcoin as collateral. The limited program is being described as the first product of its kind from a South Korean commercial bank, and at least one loan has reportedly already been made.
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The real story is the structure Jeonbuk built around the collateral.
According to EDaily, eligible companies can borrow Korean won for business operating expenses while a registered virtual-asset service provider holds the pledged BTC. Jeonbuk Bank says it does not take ownership of the coins or directly control the wallet.
That separation lets the bank extend conventional credit without
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