A South Korean bank is lending against Bitcoin. What happens if BTC falls?

Jeonbuk Bank has begun making won loans to corporate borrowers against Bitcoin held by a specialist custodian. A drop in BTC does not put coins on the bank’s own balance sheet. It does, however, test the lender’s valuation, collateral monitoring and ability to recover cash through a court supervised sale. The initial report from Edaily describes the first bank loan of its kind in South Korea, limited to corporate customers seeking operating funds. IT Chosun quoted a bank official confirming that a loan had actually been made while declining to identify the borrower. Bitcoin is the only eligible digital asset.

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