South Korea's Jeonbuk Bank has executed a corporate loan collateralized by Bitcoin, while Bulgaria's First Investment Bank (Fibank) is preparing to open cryptocurrency investments to more than one million customers through a partnership with Bitpanda Enterprise.

The two initiatives bring digital assets into established banking activities — secured corporate lending and retail investment distribution. Jeonbuk Bank has already completed its Bitcoin-backed transaction, while Fibank's offering is scheduled to go live in early 2027.

Jeonbuk Bank Executes Bitcoin-Backed Corporate Loan

Jeonbuk Bank, a subsidiary of JB Financial Group, has carried out what is reported to be the first Bitcoin-backed loan extended by a domestic South Korean bank, according to a report by IT Chosun.

Under the transaction, a corporate borrower received Korean won financing for business operations, with Bitcoin posted as collateral. A specialized digital-asset custodian holds the pledged cryptocurrency rather than the bank taking direct possession. The structure lets the borrower raise operating funds against its bitcoin without selling it, while the bank's credit exposure is backed by collateral held at a specialist custodian.

A bank confirmed that the loan had been executed but declined to identify the borrower. Jeonbuk Bank has not announced a broadly available Bitcoin lending product, and the service remains closed to retail customers.

Legal Framework Opens Door to Crypto Collateral

The transaction follows changes to South Korea's civil enforcement regime. An amendment proposal to the Supreme Court's Civil Enforcement Rules introduced procedures covering the seizure, transfer and sale of virtual assets, as well as claims to their transfer.

Those provisions create a legal mechanism for recovering debts against digital-asset collateral. For lenders, they address a core requirement of secured credit: an enforceable way to seize and sell pledged assets if a borrower defaults. The revised framework took effect on October 1.

The lending move also follows an earlier period in which South Korean authorities restricted crypto lending products offered by cryptocurrency exchanges, citing concerns over leverage and forced liquidations.

Fibank Partners With Bitpanda for Crypto Investing

Bulgaria's First Investment Bank has signed a partnership withpanda Enterprise to integrate cryptocurrency investments into its My Fibank mobile banking application. The agreement, announced on October 7, will make Fibank the first Bulgarian bank to embed crypto investing directly into an existing banking app, according to Bitpanda's official announcement.

More than one million customers are expected to gain access to digital assets alongside conventional banking services when the integration launches in early 2027. Because the offering sits inside the My Fibank app, customers would encounter crypto investing within their existing banking relationship rather than through a separate crypto platform. Bitpanda Enterprise will supply the underlying investment infrastructure, with Bitpanda serving as the exclusive provider of crypto-asset services.

Nikola Bakalov, Fibank's chief executive officer, described the partnership as an expansion of the bank's digital financial services, emphasizing the importance of working with an established European technology provider under applicable regulatory requirements.

The companies have not disclosed the complete list of supported cryptocurrencies, trading fees or specific customer eligibility conditions.

Crypto Infrastructure Extends Into Traditional Banking

The two developments build on broader efforts to integrate cryptocurrency infrastructure into conventional financial services. Jeonbuk Bank has also taken part in South Korea's Project Pangea banking initiative, in which financial institutions are exploring blockchain-based foreign exchange settlement infrastructure.

Bitpanda Enterprise already provides digital-asset services to financial institutions including N26, selected Raiffeisen banks and RAKBANK, operating infrastructure that supports investment access, liquidity and custody. Fibank thus joins an existing lineup of banks plugging into outside crypto infrastructure rather than building it in-house.

Jeonbuk Bank has not disclosed the loan amount, interest rate or collateral requirements for its completed transaction, while Fibank's crypto investment service remains scheduled for early 2027, with no specific launch date announced. Until those details emerge, both initiatives stand as narrow first steps — one completed corporate transaction on the lending side, a signed agreement on the distribution side — rather than full-scale crypto offerings.