SEOUL, May 19 (UPI) -- South Korean startup Bloom Technology announced it will join cryptocurrency trading platform IDCM Asia to set up a blockchain-based bank in Dubai.
The two groups signed an agreement earlier this month to set up a decentralized digital banking system using Bloom Technology's blockchain solution.
Under the partnership, IDCM Asia will create ways for people to make crypto transactions, including bitcoin and Ethereum, and exchange them with U.S. dollars.
Toward that end, Bloom Technology will offer its blockchain technology, dubbed Locus Chain, which aims to administer bulk transactions at minimal costs.
The new digital banking platform will also launch custody services of non-fungible tokens (NFTs), which will help collectors find a secure way to store the digital tokens, according to Bloom Technology.
NFTs refer to digital tokens widely used for collectibles, including art. After Twitter CEO Jack Dorsey sold a digitally signed copy of his first tweet in 2006 for almost $3 million this year, NFTs have soared in popularity.
"The new blockchain banking system will allow people to conduct commercial transactions with cryptocurrencies in nearly 200 countries," Bloom Technology CEO Lee Sang-yoon told UPI News Korea.
"In addition, they will be able to exchange cryptocurrencies for the U.S. dollar or the Korean won to withdraw them via automatic teller machines," he said.
IDCM Asia CEO Joseph Lee praised Locus Chain's advances in the technology in a statement.
"The global blockchain digital banking business has great upside potential. But the lack of technological prowess has prevented its debut," Lee said. "Locus Chain was the only option for us as it provides decentralization and scalability at low cost. Hence, we decided to use it for next-generation global digital financial services."
IDCM Asia is a cryptocurrency trading platform, which also offers services like fundraising management. It has set up partner branches in countries including Singapore, South Korea, Dubai and Taiwan.