DXM, the cryptocurrency financial services subsidiary of South Korea’s fintech firm Dunamu, is working with Paris-headquartered crypto security giant Ledger to launch a new custody service targeting institutional investors.
Founded in January 2019, DXM operates under Dunamu, the majority shareholder of popular South Korean cryptocurrency exchange Upbit. The new product, Upbit Safe, will leverage Ledger Vault’s hardware security technology to make trading more efficient and more secure for DXM’s institutional clients.
Ledger Vault offers hardware security module (HSM) based solutions that allow institutions to customize governance rules depending on what type of operation they run, according to Ledger’s Head of APAC Glenn Woo. He explained that while Ledger Nano X is a more well-known product, Ledger Vault is superior when it comes to institutional use cases.
DXM first plans to target captive customers who are already using Upbit or other cryptocurrencies that Dunamu has invested in, DXM Chief Strategy Officer Eric Yoo told The Block. Dunamu’s venture capital arm, Dunamu & Partners, has made a three-year plan to invest $84 million in the blockchain industry and has already put in $46 million in 26 blockchain companies. Yoo believes that assets already owned by DXM’s parent company will provide clients for Upbit Safe and help it succeed.
“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,” Yoo said. “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.”
Ledger’s Asian Pacific (APAC) operations were set up about a year ago in Hong Kong to expand the company’s services to countries in the region.