DXM, a financial services subsidiary of South Korea based fintech firm Dunamu, is working with crypto cybersecurity firm Ledger to launch an institutional crypto asset custody service.
On Dec. 4 The Block reported that DXM plans to launch the custodian under the name Upbit Safe. Ledger Vault, the custody arm of Ledger will support the initiative with its technology.
Making Trading More Efficient And Safer For Its Institutional Clients
Upbit safe will reportedly use Ledger’s hardware security technology to make trading more efficient and safer for its institutional clients.
Glenn Woo, Head of Ledger of the Asia-Pacific region explains that Ledger Vault offers solutions that allow institutions to customize their custody rules to better fit their needs.
The Chief Strategy Officer of DXM, Eric Yoo says that the firm plans to target UpBit’s customers first.
Yoo explained on the new enterprise’s outlook:
“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.”
“Crypto Space In South Korea Is Largely Hampered By Unclear Regulation”
Yoo admits that institutional participation in crypto space in South Korea is largely hampered by unclear regulation. Although he believes that clarity should improve as soon as next year, bringing new money to the local crypto industry:
“The biggest regulatory risk in Korea is uncertainty and lack of regulations. […] 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.”
Woo also said that Ledger Vault is still a new service in the space and is still trying to penetrate the market. He hopes DXM will be able to help his firm scale its operations:
“DMX has a reputation of being very secure… With the track record that they have in Korea, they can definitely help us scale.”
Source: Cointelegraph | The Block | Image: Information Age