Korea Digital Asset Custody (KDAC), a Korean digital asset custody startup, has closed its Pre-Series A funding round. The investment will strengthen the company’s technology and security infrastructure as it prepares to scale operations in the institutional digital asset custody market.

As the regulatory landscape evolves—with Digital Asset Treasury (DAT) companies emerging, cryptocurrency spot ETFs launching, and Korean won-denominated stablecoins under consideration—institutional demand for custody solutions is set to grow significantly. KDAC raised this round to upgrade its operational systems and infrastructure ahead of this expected market expansion.

The round included follow-on investments from existing shareholders Shinhan Financial Group and NH Financial Group through their subsidiaries, alongside new investor Taekwang Group, further solidifying KDAC’s financial institution-backed foundation. Participating investors included Shinhan Venture Investment, Heungkuk Life Insurance, TSIS, and NH Venture Investment/NH Investment & Securities. This makes KDAC the only digital asset custody company in Korea where financial institutions control over 50% of shares, giving it a unique positioning in the market.

Junhong Kim, CEO of KDAC, noted the strategic timing: “With the government’s second phase of virtual asset legislation approaching, we’ve positioned ourselves to adapt quickly to regulatory changes.” He added, “This investment will help establish KDAC as Korea’s premier custody platform, combining world-class security with strong regulatory compliance.”

Kim also emphasized the company’s distinctive approach: “While other players have raised capital primarily from Web3 investors, we’re building a shareholder base anchored by traditional financial institutions. This positions us as a bridge between conventional finance and digital assets.”

Looking ahead, KDAC is actively expanding its client base across DAT companies, asset managers, and securities firms. The company is also running multiple proof-of-concept projects with domestic and international financial institutions and blockchain companies as the institutional market gains momentum.