DXM, a financial services subsidiary of South Korean fintech firm Dunamu, has worked with crypto cybersecurity firm Ledger to launch an institutional crypto nugget custody service.

The partnership and the new custodian

Industry news outlet TheBlock reported on December. iv that DXM plans to launch the custodian under the name Upbit Safe and that Ledger Vault, Ledger'due south custody arm, volition support the initiative with its engineering. Upbit prophylactic volition reportedly employ Ledger's hardware security technology to make trading more than efficient and safer for its institutional clients.

Ledger's Head of Asia-Pacific region Glenn Woo explained that Ledger Vault offers solutions that allow institutions to customize their custody rules to better fit their needs. DXM Chief Strategy Officeholder Eric Yoo told the outlet that the firm plans to target UpBit's customers showtime. Yoo explained the new enterprise's outlook:

"We are a subsidiary of the largest commutation in Korea and have an advantage over our peers given that we already have a lot of avails we can bring into our custody. [...] The combination of the Upbit brand, Ledger Vault's security engineering science, and DXM's own technology will give DXM an edge in the Korean market place."

Lack of regulation hinders crypto growth

Nonetheless, Yoo admitted that institutional participation in the crypto infinite in South Korea is largely hampered by unclear regulation. Withal, he believes that clarity should improve every bit presently as next year, bringing new money to the local crypto industry:

"The biggest regulatory risk in Korea is dubiousness and lack of regulations. [...] It's quite a wild wild westward out there. [...] In one case regulations get clearer, information technology'd exist easier for us to engage with institutional money and not take the risks from uncertainties."

Woo as well explained that Ledger Vault is still a new service in the space and is still trying to penetrate the market. He hopes that with his company's assistance, DXM volition be able to help his firm calibration its operations:

"DMX has a reputation of being very secure… With the track tape that they have in Korea, they can definitely aid usa scale."

The number of custody services aiming to secure the crypto avails of institutions is steadily increasing as regulation is making the space more than suitable for institutional investors. Ane of the concluding examples is the custody feature launched by institutional Bitcoin (BTC) trading platform Bakkt for its entire client base after obtaining regulatory blessing in the commencement half of November.