Hana-Standard Chartered Digital Asset Agreement: Process Overview

Hana Financial Group's Strategic Push into Digital Assets

Hana Financial Group has made a substantial commitment to the digital asset sector. The bank's market capitalization has soared to 29.46 trillion won, marking a 74% rise over the past year. This underscores that its alliance with Standard Chartered is a significant, high-stakes strategy rather than a small-scale trial.

Expanding Market Opportunities

The digital asset custody industry is experiencing rapid growth worldwide. Forecasts suggest the global market will increase from $803 billion in 2025 to $4.38 trillion by 2033, with a compound annual growth rate of 23.6%. Although South Korea's market is smaller, it is expected to reach $1.06 billion by 2033, growing at 17.4% annually.

Fragmented Landscape and Early Advantage

Hana is entering a competitive and fast-evolving space, where being among the first movers in custody and settlement can be crucial. At present, the immediate effects are likely limited to specialized services within its current banking and trading operations.

How the Partnership Affects Liquidity

The collaboration between Hana and Standard Chartered centers on stablecoins and other digital assets, though the revenue structure remains undisclosed. The banks aim to utilize their combined networks to expand both traditional and digital financial offerings, including joint projects in cryptocurrency finance such as stablecoins. Standard Chartered, a leader in institutional trading, is positioned to be among the first recipients of Hong Kong's stablecoin issuer licenses, which could provide a regulatory foundation for future product launches.

Hana's partnership with BitGo, launched in late 2024, has established a digital asset custody service that targets a market where security and regulatory compliance are essential. This initiative is designed to capture domestic custody flows that have previously been diverted to overseas platforms.

Donchian 20-Day Breakout Strategy Backtest

• Entry: Buy when price exceeds the previous 20-day high.
• Exit: Sell when price falls below the previous 20-day low, after 20 trading days, or when reaching +8% take-profit or -4% stop-loss.
• Instrument: KRX:086790, tested over the last two years.

Risk Controls

• Take-Profit: 8%
• Stop-Loss: 4%
• Maximum holding period: 20 days

Backtest Results

• Strategy Return: -17.18%
• Annualized Return: -40.84%
• Maximum Drawdown: 17.18%
• Win Rate: 0%

Trade Metrics

Major Outflows and Market Dynamics

One of the most notable liquidity movements is the transfer of funds abroad. In 2025, South Korean investors shifted over 160 trillion won ($110 billion) to foreign crypto exchanges due to strict local regulations. Domestic platforms are restricted to spot trading, while international exchanges offer more complex products like derivatives. This has led to a significant drain of liquidity from South Korea's financial system. While the partnership's immediate effects are limited to niche banking services, it could enable Hana to recapture some of this offshore flow if regulatory changes allow for expanded digital asset offerings.

Key Drivers, Risks, and Future Outlook

The most important factor for future growth is regulatory clarity in South Korea. The delayed Digital Asset Basic Act has created a gap, fueling the massive outflow of funds to foreign exchanges. Should the regulatory framework evolve to permit broader services, such as derivatives, it could unlock substantial domestic liquidity currently leaving the country. For now, the partnership operates amid regulatory uncertainty.

A major risk is the possibility that the benefits of the collaboration may not be evenly distributed. Standard Chartered's global reach and expertise in digital assets may primarily benefit its institutional clients, while Hana's domestic flows—the main target of the outflow—may not see significant gains unless the partnership directly addresses regulatory challenges and introduces new compliant products for local investors.

Monitoring Hana's financial results will be crucial. The bank reported a net income of $2.67 billion in 2025. The financial impact of the partnership will depend on whether digital asset services, either through joint ventures or existing custody offerings, start to contribute meaningfully to future earnings. Any noticeable revenue growth from these initiatives would signal that Hana's strategic investment is paying off.