DXM and Ledger Team Up for Upbit Safe: A New Era in Institutional Crypto Custody

DXM and Ledger Join Forces

In a move that has crypto enthusiasts buzzing, DXM, a financial services arm of the Korean fintech powerhouse Dunamu, has announced a partnership with Ledger, the renowned cybersecurity firm specializing in cryptocurrency. Together, they’re launching a custodian service targeting institutions, aptly named Upbit Safe. This collaboration is not just about names; it’s about bringing cutting-edge security to the crypto space.

What is Upbit Safe?

Upbit Safe will leverage Ledger’s state-of-the-art hardware security technology, ensuring that institutional clients can trade crypto assets safely and efficiently. According to Glenn Woo, Ledger’s Head of Asia-Pacific, this initiative allows institutions to tailor their custody rules to meet their unique needs.

The Competitive Edge

Eric Yoo, DXM’s Chief Strategy Officer, pointed out the inherent advantages of launching this service under the illustrious Upbit brand. With many assets already at their disposal, DXM aims to initially cater to Upbit’s customer base. Yoo’s confidence in Upbit Safe is palpable:

“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.”

This combo of brand power, technology, and expertise might just create a formidable presence in the Korean market.

Navigating the Regulatory Wilderness

However, not all is smooth sailing in crypto-land. Yoo acknowledged the elephant in the room—regulatory uncertainty. The lack of clear guidelines has, unfortunately, held back institutional investors in South Korea. He whimsically compared the situation to an episode of a Western, stating:

“It’s quite a wild wild west out there.”

But fear not! Yoo remains optimistic that the regulatory environment will clarify soon, potentially ushering in a new wave of institutional investment.

The Growing Custody Landscape

The tide is turning for crypto custody services, with an increasing number of institutions seeking secure options for their assets. Following regulatory approval, platforms like Bakkt have also rolled out their own custody features. The combination of regulatory compliance and robust custody solutions is paving the way for a brighter future in the institutional crypto sphere.