🚀 South Korea’s KODA Reports Astonishing Growth in Crypto Assets Under Custody

Korea Digital Asset (KODA), the leading crypto custody service in South Korea, saw significant growth in its crypto assets under management.

South Korea’s KODA experiences 248% growth in crypto assets held in custody in the latter half of 2023.

By Ruholamin Haqshanas | February 22, 2024 | 2 min read

Korea Digital Asset (KODA), the largest institutional crypto custody service in South Korea, is celebrating an incredible surge in the value of crypto assets under its custody. In the second half of 2023 alone, the value of these assets skyrocketed by a jaw-dropping 248%.

The company, which was established through a collaboration between major Korean bank KB Bank, crypto venture capital firm Hashed, and blockchain tech firm Haechi Labs, proudly announced that the value of these assets reached approximately 8 trillion Korean won ($6 billion) by the end of last year. This marks a substantial increase from the 2.3 trillion won recorded just six months earlier.

KODA: South Korean Investors Embrace Custodians

In South Korea, strict regulations prevent institutions and corporations from directly investing in cryptocurrencies through exchanges. However, this has paved the way for the remarkable growth of crypto custodians, offering institutional investors a regulated avenue for managing their crypto assets.

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KODA has capitalized on this opportunity and currently dominates the local crypto asset custody sector, boasting an impressive 80% market share as of June 2023. The company proudly serves approximately 50 corporate clients, expertly managing over 200 wallets.

With recent promises from both the ruling and opposition parties in South Korea to launch local spot Bitcoin exchange-traded funds (ETFs) ahead of the general election on April 10, the demand for crypto custody services is only expected to rise further. Lee Bok-hyun, South Korea’s head of the Financial Supervisory Service, plans to travel to the United States to discuss the crypto industry with U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler, particularly regarding spot Bitcoin ETFs. Both parties have also vowed to lift the ban on institutional investments in crypto.

Q&A: What You Need to Know

Q: Why is the growth of crypto custody services significant?
A: Crypto custodians serve as a regulated and secure way for institutional investors to manage their crypto assets, circumventing restrictions on direct investments. It offers peace of mind for investors, knowing that their digital assets are safely stored and managed.

Q: What impact will the launch of local spot Bitcoin ETFs have?
A: The approval and launch of spot Bitcoin ETFs will open up more opportunities for institutional investors to enter the crypto market, potentially leading to increased adoption and further growth in the industry.

Q: How does KODA stand out in the crypto custody sector?
A: KODA’s collaboration with major financial institutions, such as KB Bank, and its dominant market share of 80% demonstrate its credibility and expertise. It has positioned itself as a trusted custodian, attracting numerous corporate clients.

For more information on South Korea’s crypto custody landscape, you can follow the latest news on Google News.

📈 Future Outlook: Opportunities and Recommendations

The impressive growth of crypto assets under custody highlights the increasing demand for secure ways to manage digital investments. As institutional interest in cryptocurrencies continues to surge, the custodial service industry is poised for further expansion.

For investors looking to capitalize on this trend, considering exposure to crypto custody service providers, such as KODA, could be a strategic move. Additionally, keeping an eye on the potential launch of spot Bitcoin ETFs in South Korea and their impact on the market can provide valuable insights for investment decisions.

Reference List

1. Ruholamin Haqshanas. (2024). South Korea’s KODA Sees 248% Growth in Crypto Assets Under Custody in Second Half of 2023. Retrieved from https://example.com
2. WuBlockchain. (2024, February 22). Twitter post
3. Google News – South Korea

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