South Korean Brokerages Race to Acquire Crypto Exchange Stakes, Positioning for Blockchain Shift in Stocks and Bonds

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South Korea’s major securities firms have moved aggressively this year to acquire stakes in cryptocurrency exchanges, positioning themselves for the blockchain-based transformation of traditional financial assets including stocks and bonds. Mirae Asset Consulting secured management control of Korbit with a 97.15% stake, while Korea Investment & Securities acquired approximately 20% of Coinone. Samsung Securities, Samsung SDS, and Samsung Card jointly acquired a 4% stake in Dunamu, and Hanwha Investment & Securities raised its Dunamu holding to 9.84%. The driving force is the expansion of blockchain technology across securities markets, including token securities and stablecoin settlement. Globally, Nasdaq and the London Stock Exchange are making similar moves by investing in crypto infrastructure firms. Bithumb has yet to find a strategic partner due to its complex governance structure, while some brokerages are focusing on building internal capabilities as they await regulatory clarity. A potential 20% cap on exchange major shareholder stakes looms as the biggest variable ahead.

Key Elements

South Korea’s major securities firms have moved aggressively this year to acquire stakes in cryptocurrency exchanges, going beyond simply entering the coin market to position themselves for the blockchain-based transformation of traditional financial assets including stocks and bonds. As blockchain technology’s applications expand from virtual assets to the issuance, trading, and settlement of securities—and as stablecoins are being explored as a payment method—the customer base, technical capabilities, and digital asset operating experience held by exchanges are emerging as core assets in the new securities trading environment.

According to the financial investment industry on the 16th, South Korea’s Samsung Securities (016360.KS) acquired a 4% stake in Dunamu, the operator of Upbit, for 612.8 billion won (approximately $448.0 million) in May, together with Samsung SDS and Samsung Card. Samsung Securities took 2%, while Samsung SDS and Samsung Card each acquired 1%. The stated purpose of the investment is “strengthening digital asset business competitiveness and securing synergies.” The companies plan to cooperate with Dunamu in token securities issuance and distribution, as well as virtual asset services.

Korea Investment & Securities signed a contract in the same month to acquire approximately 20% of Coinone, becoming its third-largest shareholder. The plan is to combine existing financial services with Coinone’s blockchain technology in line with the institutionalization of digital assets such as token securities and stablecoins.

Mirae Asset Group acquired a 97.15% stake in DigitalX, the operator of Korbit, through its non-financial affiliate Mirae Asset Consulting. The group initially agreed to acquire 92.06% and subsequently purchased additional shares to raise its stake. Mirae Asset secured management control of Korbit and directly incorporated it into the group’s digital asset infrastructure, while Korea Investment & Securities opted for a strategic partnership approach, participating as a major shareholder while preserving the existing largest shareholder’s management control.

Investment in Dunamu by financial institutions continues. South Korea’s Hanwha Investment & Securities (003530.KS) recently acquired additional Dunamu shares, raising its stake to 9.84%, and Hana Bank also acquired a 6.55% stake in Dunamu in May.

What Crypto Exchanges Have, What Brokerages Want

Cryptocurrency exchanges cannot currently handle stocks and bonds directly. Token securities that utilize blockchain are legally securities. It also remains unclear how cryptocurrency exchanges will connect with securities markets as related regulations take shape.

Nevertheless, the customers, technology, and experience that exchanges have already secured are decisive factors driving brokerages to partner with them. Cryptocurrency exchanges operate platforms used by a large number of retail investors and have accumulated know-how in trading and custody of digital assets, equipped with distributed ledger technology, know-your-customer (KYC) procedures, anti-money laundering (AML) systems, and order matching infrastructure.

Hwang Se-woon, senior research fellow at the Korea Capital Market Institute, said, “Cryptocurrency exchanges are already large platforms with substantial investor touchpoints and have accumulated considerable know-how in digital asset management and custody.” He analyzed that as capital market products are highly likely to expand in the digital asset space, securities firms are moving proactively to secure business foundations and capabilities in preparation for future market expansion.

Beyond Coins to Stocks and Bonds—Blockchain’s Expanding Applications

The backdrop to brokerages’ interest in cryptocurrency exchanges is the broadening use of blockchain. Until now, blockchain has been a technology associated with virtual assets like Bitcoin, but it has begun to be applied to existing securities such as stocks and bonds.

Token securities are the prime example. This involves recording securities such as stocks and bonds, along with their ownership relationships, on a blockchain-based ledger. South Korean financial authorities view token securities not as a new type of financial product but as existing securities issued in a new way.

South Korea’s Financial Services Commission recently announced a policy direction to expand tokenization—currently centered on fractional investment—to existing financial products such as stocks, bonds, and funds. In the long term, it is also pursuing plans to use stablecoins as a settlement method for token securities trading. The vision is to build a market that utilizes blockchain across the entire securities lifecycle, from issuance to trading, clearing, and settlement.

Overseas, the convergence of traditional securities markets and virtual asset operators is also accelerating. U.S.-based Nasdaq announced on the 10th that it would invest $100 million in Payward, the parent company of cryptocurrency exchange Kraken. The two companies will cooperate on building market infrastructure for tokenized stocks and 24-hour trading. The London Stock Exchange (LSE) also announced on the 1st that it would partner with Payward to pursue the establishment of a tokenized stock market.

A financial investment industryme venues for direct trading of stocks and bonds in the future. As blockchain expands beyond coin trading to encompass the issuance, trading, and settlement of stocks and bonds, the value of the technology and business experience accumulated by cryptocurrency exchanges is also rising.”

Bithumb Remains—Who Will Take It?

Market attention is focused on Bithumb’s strategic partner. Earlier, media reports suggested that South Korea’s Kiwoom Securities (039490.KS) would invest in Bithumb through a third-party allotment capital increase, but the investment did not materialize. Recently, KB Securities was also mentioned as a potential investor in Bithumb, but KB Securities stated the reports were “groundless.”

Bithumb’s complex governance structure is a variable in investment decisions. Bithumb Holdings is the controlling shareholder of Bithumb, with the interests of existing shareholders such as Vidente entangled above it. For a securities firm to invest in Bithumb, it must assess not only the exchange’s business prospects but also risks arising from existing shareholder relationships and governance structure.

A securities industryatory framework, the value of exchanges could rise significantly, so securities firms cannot help but be interested. However, the current uncertainty in regulation and market outlook makes it difficult to commit to actual investments.”

Brokerages on the Sidelines

Not all major securities firms have joined the race to acquire exchange stakes. Some brokerages are taking a wait-and-see approach rather than pursuing immediate acquisitions or investments, given that the direction of virtual asset institutionalization and business regulations have not yet been specified.

Large firms that have not made equity investments are focusing on strengthening internal capabilities first. South Korea’s NH Investment & Securities (005940.KS) has formed an STO Vision Group to pursue tokenization of special assets, while Shinhan Investment & Securities has established an STO Alliance with 39 partners including fractional investment and technology companies.

Mid-sized and smaller brokerages are also moving actively. DB Securities signed a strategic business agreement with the Solana Foundation in February this year to pursue the establishment of a digital capital market based on token securities. Kyobo Securities expanded and reorganized its Digital Asset Biz Division last December, focusing on STO commercialization.

The ‘20% Rule’ Is the Biggest Variable

The biggest variable in future alliances between securities firms and cryptocurrency exchanges is regulation of exchange major shareholder stakes. Policymakers and financial authorities are currently discussing measures including capping major shareholder ownership in cryptocurrency exchanges at around 20%.

If a 20% ownership cap is introduced, a major restructuring of existing exchange governance structures would be inevitable. Mirae Asset Consulting, which secured a 97.15% stake in Korbit, could also be required to significantly reduce its stake depending on how the regulation is applied. Large-scale mergers and acquisitions (M&A) by financial companies seeking management control of exchanges could become practically impossible.

However, the industry is watching for the possibility that the final rules may incorporate various approaches rather than forced disposal of excess stakes—such as restricting voting rights on shares exceeding a certain threshold or providing exemption criteria.

The following is a summary of major securities firms’ and financial companies’ investments in cryptocurrency exchanges this year.

Note: Stake percentages are based on each company’s disclosures or announcements and may change due to future additional acquisitions or regulatory changes.

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Source: finance.biggo.com