South Korean brokerage Kiwoom Securities has confirmed it is pursuing a stake in cryptocurrency exchange Bithumb, making it the latest major securities firm to explore expanding its footprint in digital assets. According to ChainThink reports, on June 29, Kiwoom Securities is in discussions with Bithumb regarding a third-party private placement, aiming to invest by subscribing to new shares. The specific equity stake and investment amount are still under negotiation, though the exact transaction structure has yet to be finalized. A Bithumb official confirmed to local media that the company is discussing potential partnerships with financial institutions while keeping multiple possibilities open, but noted that nothing has been specifically reviewed or decided yet. Kiwoom Securities stated it "cannot confirm" the investment discussions, as reported by BigGo Finance. According to financial investment industry sources, both parties are currently in the process of assessing each other, and the discussions are at a very preliminary stage, well before any concrete deal structure or investment amount has been determined.
The proposed investment would add another major financial institution to South Korea's digital asset sector, as reported by ChosunBiz. Hana Bank, one of the country's four largest banks, disclosed plans last month to acquire a $670 million stake in Dunamu, the operator of Upbit. Local media reported that three Samsung affiliates would purchase about $407.7 million worth of Dunamu shares, securing a combined 4% ownership interest. International cryptocurrency firms have also expanded their investments, with OKX Ventures announcing earlier this year that it would purchase a 19.6% stake in Coinone, while Binance completed its acquisition of Gopax after regulatory delays. These investments underscore South Korea's growing importance as one of Asia's largest cryptocurrency markets. With news of Kiwoom Securities' potential investment in Bithumb, a significant portion of South Korea's major cryptocurrency exchanges are now either already linked to securities firms through capital ties or in discussions to establish them.
The aggressive push by securities firms to collaborate with crypto exchanges is largely driven by expectations surrounding the institutionalization of token securities and stablecoins, as noted by BigGo Finance sources. Brokerages have growing incentives to build bridges with exchanges to expand their digital asset businesses, while exchanges stand to benefit from the capital strength and internal control capabilities of traditional financial firms. Industry watchers interpret Kiwoom's discussions as closer to a strategic investment aimed at expanding its digital asset business rather than a purely financial investment. As a dominant force in online brokerage, Kiwoom could generate significant synergies by partnering with a crypto exchange, leveraging its vast retail investor base and digital trading infrastructure. If stablecoin payment infrastructure becomes regulated, securities firms are expected to leverage exchanges' digital asset infrastructure to generate new revenue streams, likely evolving beyond simple equity investments into strategic alliances and business partnerships.
The investment negotiations come amid significant regulatory pressures, with South Korea's Financial Services Commission considering rules that would limit a crypto exchange's largest shareholder to a 20% stake, with exceptions allowing up to 34% under specific conditions. Bithumb Holdings currently holds a 73.56% stake in Bithumb, meaning it would face significant pressure to reduce its holdings if such regulations take effect. The exchange has been pursuing a KOSDAQ listing with Samsung Securities as its lead underwriter, involving a spin-off to separate core exchange operations from new business units. Meanwhile, Vidente's residual stake in Bithumb Holdings remains a variable, as the entity faces potential delisting due to embezzlement and breach of trust allegations. The latest regulatory developments include South Korea's financial regulators advancing the second phase of reforms to the Virtual Asset Act, proposing to cap the ownership stake of major exchange shareholders at 20% in principle, with exceptions allowing up to 34%.
The discussions are part of a broader trend of expanding cooperation between securities firms and cryptocurrency exchanges, as South Korea's STO legislation is set to take effect next year and stablecoin regulation remains under active discussion. Korea Investment & Securities signed a strategic equity investment agreement with crypto exchange Coinone, acquiring approximately 20% of its shares to become Coinone's third-largest shareholder. Samsung Securities, alongside Samsung SDS and Samsung Card, also disclosed the acquisition of a 4.0% stake in Dunamu — the operator of Upbit. Hanwha Investment & Securities acquired an additional 3.90% stake in Dunamu, raising its total holdings to 9.84%. Meanwhile, Mirae Asset Consulting decided to acquire a 92.06% stake in crypto exchange Korbit for 133.5 billion won (approximately $86.4 million). With all four of South Korea's major crypto exchanges now having cooperative frameworks with domestic brokerages, the accelerating push by securities firms to secure stakes in crypto exchanges reflects the growing likelihood that the digital asset market will increasingly intersect with the institutional financial sector.
