Brokerages rush into crypto exchange investments to secure future growth

Kim Sung-hwan, left, CEO of Korea Investment & Securities, poses with Coinone CEO Cha Myung-hoon, third from left, and other officials during a strategic investment agreement signing ceremony at Coinone's headquarters in Yeouido, Seoul, Friday. Courtesy of Korea Investment & Securities

Local securities firms are ramping up investments in cryptocurrency exchanges as they seek to secure a foothold in the country's emerging digital asset market ahead of the planned introduction of a tokenized securities framework, industry officials said Friday.

Korea Investment & Securities announced that it has signed a strategic investment agreement with cryptocurrency exchange Coinone, acquring a roughly 20 percent stake in the platform.

The deal will make the brokerage Coinone's third-largest shareholder, following CEO Cha Myung-hoon, who holds a 30.36 percent stake, and Com2uS Holdings with 24.54 percent.

The securities firm said its investment in Coinone is intended not merely as an equity acquisition but as a foundation for expanding into new digital finance businesses.

"With this partnership, we have taken our first step beyond the boundaries of conventional finance toward blockchain-based digital financial services," Korea Investment & Securities CEO Kim Sung-hwan said. "We seek to position ourselves as a leading player in the global digital asset market through innovative tokenized securities products and future stablecoin-linked initiatives."

The previous day, Samsung Securities, Samsung SDS and Samsung Card agreed to acquire a combined 4 percent stake in Dunamu, the operator of Korea's largest cryptocurrency exchange, Upbit.

The companies said they will purchase 1.39 million shares from Kakao affiliates for 612.8 billion won ($407 million).

Samsung Securities also said the investment was aimed at creating new business opportunities in the digital asset sector.

The move follows similar investments by other brokerages.

Earlier this month, Hanwha Investment & Securities agreed to acquire an additional 1.36 million shares in Dunamu, raising its stake to 9.84 percent from 5.94 percent.

In February, Mirae Asset Financial Group announced that Mirae Asset Consulting, the group's holding company, would acquire a 92 percent stake in cryptocurrency exchange Korbit for 133.5 billion won.

The series of investments reflects growing expectations that traditional financial institutions could play a larger role in the digital asset ecosystem as regulators adopt a more accommodative stance toward the sector.

Though not codified in law, financial authorities have de facto restricted direct participation by financial firms in the cryptocurrency market since 2017. In recent months, however, regulators have shown signs of easing their stance to align the country's digital asset framework with global market trends.

One of the most anticipated areas of cooperation between brokerages and crypto firms is security token offerings (STOs), which involve issuing and trading blockchain-based tokens that represent ownership of real-world assets.

If the STO market gains traction, securities firms are expected to play key roles in issuance, distribution, and brokerage and account management, while cryptocurrency exchanges could provide blockchain infrastructure and trading expertise.

Market watchers also see potential for integrated investment platforms that allow users to trade stocks and digital assets through a single interface.