- “Custody is the heart of STO”: Foundational infrastructure that underpins investor protection, regulatory compliance, and institutional capital participation.
- The only VASP in its kind of consortium in Korea: Reinforcing BDACS’s position as the core digital-asset custody layer supporting the regulated STO market in Korea and globally.
BDACS, a regulated digital-asset custodian, announced that the KDX Consortium, led by the Korea Exchange (KRX), has received preliminary approval from the Financial Services Commission (FSC) to operate an over-the-counter (OTC) broker marketplace for investment certificates.
This decision marks a major regulatory milestone for Korea’s Security Token Offering (STO) and fractional investment ecosystem, establishing a formal pathway for investment certificates and tokenized, fractionalized products to be traded within the regulated financial market. As a result, the market’s focus is rapidly expanding beyond issuance and distribution to the foundational infrastructure required for secure ownership, control, and investor protection, most notably, custody.
On February 13, the FSC approved preliminary authorizations for fractional investment OTC exchange operators during its plenary session, designating the KDX Consortium, anchored by KRX and Koscom as an approved operator. The KDX Consortium comprises approximately 40 participating institutions, spanning traditional financial services leaders alongside digital finance and blockchain technology firms.
An STO exchange is not simply a trading venue. It is end-to-end financial market infrastructure supporting issuance, distribution, investor rights administration, and secure storage and control of blockchain-based securities and investment certificates. Within this consortium, BDACS is the only Virtual Asset Service Provider (VASP) participating in any such initiative in Korea, an unprecedented milestone that underscores BDACS’s institutional positioning and specialized capabilities in regulated digital-asset custody.
Why custody sits at the center of a regulated STO market
- Investor protection and proof of control
Blockchain-based assets can be irreversibly lost if private keys are compromised, mishandled, or destroyed. Institutional-grade custody provides hardened security architecture, multi-party controls, and governance frameworks designed to reduce single-point-of-failure risk. Independent third-party custody also mitigates conflicts of interest and operational risks—strengthening confidence that assets are safeguarded and managed under robust controls.
- Regulatory-grade segregation and compliance
Regulators typically emphasize clear functional separation among issuance, distribution, and storage to reduce misconduct risk and protect market integrity. In a regulated STO market, particularly where tokenized instruments map to real-world assets (RWAs) such as real estate, shipping, and fine art, custody plays a critical role in aligning on-chain token control with enforceable legal rights, reporting obligations, and compliance requirements.
- Enabling institutional participation at scale
Large institutions generally prefer professional custodians over direct key management due to fiduciary, legal liability, and internal control requirements. Mature custody infrastructure is therefore a core precondition for scaled institutional capital formation and sustainable market growth.
BDACS provides institutional-grade, multi-asset custody with advanced wallet security, asset segregation, transaction approval workflows, and comprehensive compliance and control frameworks. As the STO exchange progresses toward full operation, BDACS is positioned to serve as a trust anchor—supporting secure market participation across issuers, securities firms, and investors.
Tailwinds for real-world asset tokenization
With preliminary approval now in place, Korea’s RWA tokenization market is expected to accelerate. In particular, tokenization initiatives tied to Busan’s specialized industries, such as shipping, ports, logistics, and tourism, may gain momentum, enabling new forms of regulated, fractionalized investment certificates and broadening access to previously illiquid asset classes.
This preliminary approval is a meaningful step toward enabling digital assets to operate within Korea’s regulated financial infrastructure. Custody is not simply storage. It is core market infrastructure that enables investor protection, compliance, and institutional participation. BDACS will continue strengthening the security, internal controls, and risk management needed to support the expansion of Korea’s STO and RWA markets.
Harry Ryoo, CEO of BDACS, said: “This preliminary approval is a meaningful step toward enabling digital assets to operate within Korea’s regulated financial infrastructure. Custody is not simply storage. It is core market infrastructure that enables investor protection, compliance, and institutional participation.” He added: “BDACS will continue strengthening the security, internal controls, and risk management needed to support the expansion of Korea’s STO and RWA markets.”
BDACS will continue advancing its technology and deepening collaboration with Korea’s financial sector to reinforce its role as critical infrastructure within the country’s regulated digital finance ecosystem.
