South Korean crypto-financial services provider, DXM, has partnered with French cryptocurrency security and infrastructure developer Ledger, to launch Upbit safe.
Upbit Safe is designed as a custody solution for institutional investors, which will use Ledger Vault hardware security technology developed by Paris-based Ledger. The tech in place is projected to provide security and improve trading efficiency for DXM’s institutional clients.
The announcement comes to a short while after the Upbit crypto exchange suffered a major hack on its cold wallet that resulted in the loss of 342,000 ETH. Dunamu[u1] holds the majority shares in the Upbit crypto-exchange and is also involved in other crypto-exchanges in South Korea.
DXM was launched by Dunamu in January 2019, to offer financial services for cryptocurrencies.
Upbit Safe Institutional Custody Solutions
According to their website, Upbit Safe is a partnership between DXM blockchain Technology Company for secure storage of cryptocurrency assets for institutions, and Upbit crypto exchange. Upbit safe services consist of Upbit enterprise, multiple account systems, diverse security layers, and distributed cold wallets.
The first step in the implementation of Upbit Safe will involve seeking out existing Upbit exchange customers as well as those from other crypto exchanges that are connected to Dunamu.
The chief strategy officer at DXM Eric Yoo stated that the Safe would receive total support from Dunamu.
DXM has total control of the Dunamu assets they can offer custody solutions to. That means Upbit Safe has a fair advantage over other similar services in the industry:
“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.”
The Safe Will Increase Ledger’s Exposure in the Pacific Asian Region
The head of APAC at Ledger Vault, Glenn Woo, stated that Ledger vault’s hardware security module solutions allow institutions to customize governance rules for their specific operations.
The partnership with DXM is expected to increase exposure for Ledger Vault in the Asian Pacific region. They plan to extend their services by launching Ledger’s Asian Pacific (APAC) in Hong Kong.
“We are still young, and we’re trying to penetrate different markets with the help of partners that want to use ledger vault to meet their needs. DXM has a reputation of being very secure… with the track record that they have in Korea, they can definitely help us scale.”
Institutional Custody Services Are Growing in the Crypto Industry
A research conducted by the Bank of New York Mellon indicated that the demand for cryptocurrency custody solutions hit an all-time high in 2019. Analysts believe that custody offerings are the key to bridge the existing bridge between the traditional institutional investor market and the digital assets industry.
In South Korea, DXM will become the first company to offer institutional custody for cryptocurrencies. The success of the Safe services will promote the adoption of cryptocurrencies through improved security in all exchanges that are connected to Dunamu, including Upbit Global Exchange.
Other variations of custody solutions in the market include Wall Street Bakkt Warehouse, Coinbase Custody, and Digital Assets Vault by Vontobel Swiss Bank, State Street, and German Stock Exchange Stock Stuttgart.