Financial institutions may be returning to the South Korean crypto market and privacy-focused blockchain project Miden is trying to get a head start.
Miden has signed a strategic memorandum of understanding with Korea Digital Asset (KODA), South Korea’s largest institutional custodian of digital assets, to collaborate on infrastructure and standards for the regulated adoption of digital assets in the country, the company announced in a press release on Tuesday.
The partnership brings together KODA’s custody platform and regulatory experience with Miden’s privacy-preserving blockchain technology, designed to support compliant financial applications, the companies said.
The partnership comes as South Korean financial institutions consider a return to digital assets, after the country’s top regulator signaled it may lift a nine-year ban on corporate participation. The Financial Services Commission is considering changes to rules that would allow businesses to hold and trade cryptocurrencies.
The FSC moved in 2017 to control direct trading of cryptocurrencies by banks and businesses through regulatory guidelines, as part of a broader initiative that also introduced stricter oversight of access to exchanges through real-name accounts. Officials said the measures were aimed at calming what they call overheated speculation and strengthening safeguards against money laundering.
The deal comes as South Korea continues to expand its institutional framework for digital assets. Recent regulatory developments include the approval of enterprise digital asset accounts and ongoing discussions around Bitcoin. spot exchange-traded funds (ETFs), both of which are seeing increased interest from traditional financial institutions.
KODA was jointly founded by KB Kookmin Bank, one of South Korea’s largest commercial banks, and blockchain investment firm Hashed.
Miden is a blockchain infrastructure company focused on privacy-preserving financial applications. The platform uses zero-knowledge technology to enable selective privacy while supporting compliance and future security requirements.
“Miden is designed for institutions that want to rely on blockchains but want to maintain their privacy. Korea represents a huge opportunity as it already has a strong crypto culture and its institutions are now ready to participate in larger numbers under the new FSC rules,” said Azeem Khan, co-founder of Miden, in emailed comments.
Learn more: Bitcoin Asset Manager Parataxis to Go Public in $400M SPAC Deal Backed by SilverBox
