DXM rolls out custody service with Ledger, targeted at institutional investors

Quick Take

  • DXM, a subsidiary of South Korean firm Dunamu, is launching a new custody service called Upbit Safe with technology support from Ledger Vault
  • The company expects to benefit from its parent company’s ownership of Upbit, a major cryptocurrency in Korea
  • The lack of regulations constitutes one of the biggest challenges for cryptocurrency and blockchain companies in the country, but DXM anticipates clearer regulatory guidance to take shape in early 2020 

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,