DXM, the cryptocurrency branch of the Korean market operator Dunamu, will offer custodial services in partnership with the French hardware firm, Ledger.
Upbit Safe Service to Use Ledger Vault Security Technology
Ledger, the producer of some of the most popular hardware wallets of the Nano series, will offer custody with institutional-grade quality, reported the News Asia. The interested parties will be tapped from the clients of DXM, and the partnership with Upbit may also yield large-scale clients.
DXM will combine Ledger’s Vault Security technology, based on hardware storage, branding the new product as Upbit Safe.
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
Eric Yoo, chief strategy officer at DXM, said in a statement,
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.
South Korea was one of the hottest markets for crypto trading, especially during the boom of 2017. Since then, speculation has calmed down, and volumes were lost. The South Korean government curbed domestic token sales, but overall the sector remains unregulated.
We’re still pretty young and we’re trying to penetrate different markets with the help of partners that want to use Ledger Vault to meet their needs,” said Ledger’s Head of APAC Glenn Woo. “DXM has a reputation of being very secure…With the track record that they have in Korea, they can definitely help us scale.
Crypto Asset Storage Still Unregulated in South Korea
The news of the partnership arrives about a week after Upbit lost 342,000 ETH from its cold wallet. Currently, there are no regulations for the custody of crypto funds, and inside meddling or human errors expose valuable assets to risk.
Ledger itself has seen some of its devices exposed for holding security flaws. Still, using original, new hardware wallets is one of the safest ways to keep private keys. Institutional custody is slowly becoming one of the tools for wider crypto adoption, but the service is appearing for the first time in Korea.
The most prominent services in the sector include Coinbase Custody, which hosts multiple assets and even pays out staking rewards. Bakkt Warehouse was recently expanded to include all institutional holders of BTC, beyond the traders of BTC futures.
What do you think about the DXM-Ledger partnership? Share your thoughts in the comments section below!
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