Privacy-focused blockchain project Miden has signed a strategic memorandum of understanding (MOU) with Korea Digital Asset (KODA), South Korea's largest institutional digital-asset custodian, according to a company press release. The partnership aims to collaborate on infrastructure and standards for regulated digital-asset adoption in South Korea. The agreement 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 partnership emerges 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. As reported by CoinDesk, the Financial Services Commission is considering rule changes that would allow companies to hold and trade cryptocurrencies. The FSC had moved in 2017 to restrict banks' and corporations' direct crypto trading through regulatory guidance, aimed at cooling speculation and strengthening anti-money laundering safeguards.
According to the report, South Korea continues to expand its institutional digital-asset framework with recent regulatory developments including approval for corporate digital-asset accounts and ongoing discussions around bitcoin spot exchange-traded funds (ETFs). These developments have increased interest from traditional financial institutions in the digital asset space. The regulatory progress creates new opportunities for institutional participation in South Korea's crypto market.
KODA was jointly founded by KB Kookmin Bank, one of South Korea's largest commercial banks, and blockchain investment firm Hashed. Miden is described as a blockchain infrastructure company focused on privacy-preserving financial applications, with the platform using zero-knowledge technology to enable selective privacy while supporting compliance and security requirements. As reported, Miden's technology is specifically designed for institutions seeking blockchain solutions with privacy features.
"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," stated Azeem Khan, cofounder of Miden, in emailed comments to CoinDesk. The partnership positions both companies to capitalize on the growing institutional interest in digital assets within South Korea's evolving regulatory landscape.
