The Growing Need for Institutional Infrastructure Amidst Strict Regulations

As the regulatory environment tightens, discussions around building institutional infrastructure in the domestic digital asset market are gaining momentum. With public agencies attempting to integrate private custody and the rise of global tokenization trends, the role of licensed custodians equipped with technological and compliance capabilities is emerging as a critical market factor.

1. CUSTODY: Legal Expertise & Licensed Infrastructure

Maximizing Compliance through Tech-Law Synergy: DealSite highlight that BDACS has secured a 26% custody market share by combining technical prowess with the legal expertise of its executive team. Amidst a tightening regulatory landscape, BDACS is evaluated as having secured market trust through its proactive compliance frameworks.

Licensed Custodians as a Market Prerequisite: Token Post emphasized that domestic corporations engaging with digital assets require licensed custodians as a baseline. With all top four financial groups entering the custody space, Woori Financial Group’s strategic alliance and equity investment in BDACS was cited as a prime example of securing this essential gateway.

Strict Bidding Requirements for Public Custody: The National Police Agency is attempting to outsource seized digital assets, issuing its fourth bidding notice with a budget increased by 3.2 times (KRW 267 million). Previous attempts failed as bidding companies were deemed unqualified, raising media questions about whether any custodian can meet the agency’s strict prerequisites, including a mandatory full-compensation clause.

▶ Sources: Herald Economy | Edaily

2. TOKENIZATION: Web3 Payment Rails & Global STO Trends

Vision for Asia’s Regulated Tokenization Hub: In a global interview, CSO Terry Kim stated plans to integrate KRW1 into global networks like Circle’s Arc Layer-1 and StableFX, building a real-time settlement infrastructure for Asian cross-border trade. Sharing the progress of institutional PoCs for tokenized Money Market Funds (MMFs), he outlined the goal for BDACS to become the regulated home for tokenized traditional assets in Asia.

▶ Source: LinkedIn(Unfiltered)

Bridging Payment Gaps & Urgent STO Mandates: At the Bitcoin Seoul 2026 conference, experts diagnosed Korea’s lack of an “internet-native payment rail,” explicitly citing BDACS’s KRW1 initiative as a key solution to fill this void. During the opening panel, John Cahill, APAC COO of Galaxy Digital, further highlighted the rapid pace of global tokenization. Citing Nasdaq’s ongoing discussions to tokenize listed stocks by year-end, he warned that “inaction is Korea’s biggest risk,” urging the local market to swiftly secure robust STO infrastructure.

▶ Sources: Hans Economy | Seoul Economy