DXM, the blockchain subsidiary of UpBit operator Dunamu, has tied with crypto hardware wallet manufacturer Ledger to launch an institution-focused custody service.
As reported by The Block on Wednesday, the platform will be called UpBit Safe and will be supported by the technology of Ledger Vault, providing institutional clients a safe environment for digital asset storage and trading.
With the new service, the firm will target the existing UpBit’s customers.
Commenting on the prospect, Eric Yoo, chief strategy officer at DXM, told the publication: “We are a subsidiary of the largest exchange in Korea and have an advantage over our peers given that we already have a lot of assets we can bring into our custody. […] The combination of the Upbit brand, Ledger Vault’s security technology, and DXM’s own technology will give DXM an edge in the Korean market.”
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Less institutional activity
South Korea is one of the largest markets for crypto trading. However, institutional turn out in the country is still on the lower side due to unclear regulations.
“The biggest regulatory risk in Korea is uncertainty and lack of regulations,” Yoo added. “It’s quite a wild wild west out there. […] Once regulations become clearer, it’d be easier for us to engage with institutional money and not take the risks from uncertainties.”
Though the Korean National Assembly has proposed multiple legislations to regulate the sector in the past years, none of them turned into law. Yoo, however, believes that the positive regulatory framework will be introduced within the first half of next year.
“With Dunamu and DXM, we do not see regulation as a problem at all,” Glenn Woo, Ledger’s head of APAC, said. “I’ve worked with them for almost a year now. They have people such as Eric Yoo who are coming from traditional finance. They understand how the traditional market works and wants to apply it to the new crypto world.”
Meanwhile, UpBit was recently hacked, and hackers siphoned $50 million worth Ether from the exchange.