[DigitalToday reporter Ji-young Lee] Sh Suhyup Bank is teaming up with blockchain company Inpinit Block to verify whether digital asset custody and security technologies can be applied to banking operations. The move is aimed at gaining operational experience with the technology and examining the potential to expand into digital asset financial services.

Suhyup Bank said on Wednesday it will participate with Inpinit Block in the Korea Communications Agency’s proof-of-concept support program that links large and mid-sized companies with the government’s Deep-tech Startup Project (DIPS).

The demonstration will run through year-end. It will use Inpinit Block’s blockchain technology to verify whether digital asset custody and security technologies can be applied to banking operations.

Suhyup Bank plans to use the project to boost its understanding of the technology and its practical capabilities, and to review possible links to new financial businesses.

The two companies previously signed a strategic partnership. Suhyup Bank then participated in a commissioned test of Inpinit Block’s blockchain-based solution for issuing and managing records for prepaid electronic payment instruments.

Suhyup Bank Chief Executive Hak-gi Shin (신학기) said, "As the environment in the digital asset market is changing rapidly, it is important for financial institutions to understand and respond proactively." He added, "We will actively identify new financial services and business opportunities and become a bank that leads innovation in future finance."