South Korea’s Jeonbuk Bank has announced the launch of “susuho” (susu) or bitcoin-backed loans for corporate clients. The service allows businesses to take out Korean won loans, using bitcoin as collateral. The product will be provided on a limited basis, with the aim of supporting operating costs for participating companies. According to local news site Edaily, the report published on October 12, bitcoin is the only cryptocurrency collateral accepted for the product.
The borrower will have to place bitcoin with a special digital asset custodian, while the bank will hold a pledge on the cryptocurrency. In the case of delinquency, the bank can demand that the bitcoin collateral be sold to satisfy the outstanding debt. The law permits this, as of October 1, 2023, amended civil enforcement law allows for the forced sale of crypto assets.
NEW: South Korea’s Jeonbuk Bank has started offering bitcoin-backed loans, according to Edaily news.
The bank will initially accept only bitcoin as collateral for loans offered on a limited basis to corporate clients, and plans to expand the services depending on demand and regulatory developments. bitcoin:native
— The Block (@TheBlockCo) October 12, 2026
Jeonbuk Bank selected bitcoin for its large market capitalization, liquidity, and stable pricing. The bank claims to have conducted internal stress tests to identify potential risks associated with the product. It uses a weighted average price of the cryptocurrency based on the leading exchanges to determine the value of bitcoin, and it smoothes price volatility by using median calculations.
Jeonbuk Bank has established rules to protect the interests of its clients when using custodians. Custodians can only use virtual asset service providers registered in South Korea. In addition, to host bitcoin, the companies must have certifications in information security, be compliant with the Travel Rule, separate customer assets, use cold storage, and have insurance or reserves.
The bank did not disclose the interest rate for the loan, the loan-to-value ratio, the total value of the loan, or the custodian. The bank will review the product based on changing regulations and customer preferences.
Jeonbuk Bank adds this product to its strategy to provide digital-asset-related services, including exchange custody accounts, payment and settlement services, remittances, stablecoins, and integrated wallet services, as part of President Park Chun-wan’s innovation plans. Jeonbuk is not the only bank that has shown interest in bitcoin loans.
JPMorgan became the first investment bank to offer loans secured by crypto assets to institutional investors in March 2026. As reported, the bank’s collateral includes bitcoin and ether. Other crypto-lending banks include Sygnum and BitGo.
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