Sh Suhyup Bank has secured a 14.95% stake in South Korean digital asset custodian Infiniteblock and will move to identify new businesses related to digital assets.

Sh Suhyup Bank said it signed a memorandum of understanding for a strategic partnership at its headquarters in Songpa district, Seoul, on Wednesday, attended by Suhyup Bank CEO Shin Hak-gi (신학기), Infiniteblock CEO Jung Gyu-tae (정규태) and others.

Suhyup Bank said the investment secured it a 14.95% stake in Infiniteblock, making it a joint second-largest shareholder.

Infiniteblock is a virtual asset service provider (VASP) that runs a digital asset custody business. Suhyup Bank decided to invest as it expects the custody market to have greater growth potential as digital assets are increasingly incorporated into the regulated financial system. It plans to broaden its business portfolio by developing new business models that link existing banking services with digital assets.

The two companies plan to pursue new business models that connect financial services and digital assets, and cooperate on blockchain-based technology, based on the equity investment.

Shin said the decision was aimed at securing a foothold for participation in the rapidly changing digital asset market. He said Suhyup Bank would diversify its business portfolio and secure new business opportunities, starting with a strategic investment in the digital asset custody business.