Corporate Crypto Access Could Bring 82 Trillion Won Under Management

Institutional crypto holdings in South Korea could grow to as much as 82 trillion won ($59 billion) by 2030 if domestic companies are allowed to trade digital assets in earnest, according to an analysis. The inflow of corporate money could open a new market for the financial industry in areas such as trading and custody.

Seoul Economic Daily commissioned Web3 research firm Tiger Research to size the corporate crypto market based on assets under management at domestic financial institutions and pension funds. The analysis, released on the 9th, estimated institutional crypto holdings at about 16 trillion won in 2027 and up to 82 trillion won in 2030.

The 2030 figure reflects growth in institutional assets under management and wider crypto investment. For private financial institutions, the analysis applied a ceiling of 5% of assets under management, referring to investment limits discussed in Korea. For pension funds and other public funds, it applied 2%, taking into account investment levels at overseas institutions and their conservative approach. The 82 trillion won figure is an upper-end estimate that assumes institutional participation expands sufficiently.

Tiger Research said that if 82 trillion won in assets under management materializes, trading, custody and prime brokerage could generate about 570 billion won a year in financial service revenue. “Inflows of institutional money are expected to lead not only to larger crypto trading volumes but also to a new market for financial services,” the firm said.

A shortage of institutional participation relative to trading volume is cited as a constraint on growth in Korea’s crypto market. The won has accounted for about 30% of fiat currency used in crypto trading until recently, second only to the dollar, but the market is built around retail investors. At U.S. exchange Coinbase, by contrast, institutional investors account for more than 80% of spot trading volume. The Financial Services Commission unveiled a plan last year to allow corporate accounts in phases, but participation by domestic companies remains limited.

If the corporate market opens, the ripple effects are expected to extend beyond exchanges and financial firms. As corporate holdings and trading of crypto increase, new demand could emerge in accounting and tax services, security, anti-money laundering, data and enterprise software. Companies would be able to use crypto not only as an investment vehicle but also in actual business operations such as payments, remittances and treasury management, expanding the market across related industries.

“The longer the opening of the corporate market is delayed, what Korea loses is not immediate trading volume but the opportunity to connect corporate demand that is already arising to domestic industry and value added,” said Cho Yoon-sung, a senior researcher at Tiger Research.

#Crypto#KoreaCrypto#InstitutionalInvestors#TigerResearch#DigitalAssets#FSC

Original reporting by Shin Joong-sup for Seoul Economic Daily.

AI-translated from Korean. Quotes from foreignxact original wording

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