Financial institutions may be returning to South Korea’s crypto market and privacy-focused blockchain project Miden is trying to get ahead of the curve.
Miden has signed a strategic memorandum of understanding (MOU) with Korea Digital Asset (KODA), South Korea’s largest institutional digital-asset custodian, to collaborate on infrastructure and standards for regulated digital-asset adoption in the country, the company said in a press release Tuesday.
The partnership brings together KODA’s custody platform and regulatory experience with Miden’s privacy-preserving blockchain technology, which is designed to support compliant financial applications, the companies said.
The partnership comes as South Korean financial institutions eye a return to digital assets, after the country’s top regulator signaled it may roll back a nine-year ban on corporate participation. The Financial Services Commission is considering rule changes that would allow companies to hold and trade cryptocurrencies.
The FSC moved in 2017 to rein in banks’ and corporations’ direct crypto trading through regulatory guidance, part of a broader push that also introduced tighter supervision of exchange access via real-name accounts. Officials said the measures were aimed at cooling what they called overheated speculation and strengthening safeguards against money laundering.
The agreement comes as South Korea continues to expand its institutional digital-asset framework. Recent regulatory developments include approval for corporate digital-asset accounts and ongoing discussions around bitcoin BTC$88,326.08 spot exchange-traded funds (ETFs), both of which have 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 built for institutions that want to build on blockchains but want privacy. Korea is a massive opportunity because it already has a strong crypto culture and now its institutions are set to participate in greater numbers following the FSC’s new rules,” Azeem Khan, cofounder of Miden, said in emailed comments.
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