South Korea’s National Pension Service, the third-largest public pension fund globally with over $800 billion in assets, is exploring the implementation of blockchain technology for its transactions.
A report from a local news source indicates that the National Pension Service, which manages assets exceeding 1,224 trillion Korean won, or approximately $836 billion, is interested in utilizing blockchain to enhance transparency in its fund transactions.
While NPS had previously indicated no immediate intentions to invest in cryptocurrencies, it has shown interest in the benefits of blockchain technology by investing in the shares of a Bitcoin (BTC) acquisition firm and in major crypto exchange Coinbase.
In addition to increasing transparency, the public pension fund aims to enhance security. According to the local report, NPS plans to use blockchain for managing deposits, handling client withdrawals, and overseeing investments.
The initiative will kick off with preliminary disclosures, and the fund plans to consult with leading blockchain specialists in the industry. This feedback phase will assist in a research study aimed at evaluating the project’s feasibility.
Upon completion of this phase, NPS is set to officially announce the project, which will integrate blockchain technology with the operations of South Korea’s premier public pension fund. The benefits of blockchain are expected to play a crucial role in addressing issues related to potential record tampering.
This interest in blockchain isn’t entirely new for the NPS, as it has previously utilized the technology to monitor pension fund transactions for clients based overseas.
The National Pension Service’s initiative comes in light of a significant rise in cryptocurrency investments in the nation.
As previously noted, the number of crypto investors in South Korea has exceeded 16 million, rising from 14 million in March 2024 and increasing further following Donald Trump’s electoral victory in November.