Ripple Labs has formed a strategic partnership with BDACS, a South Korean digital asset custody provider, to enhance institutional custody solutions for XRP and Ripple USD (RLUSD). This collaboration marks a significant step toward strengthening the country’s institutional crypto infrastructure amid increasing regulatory scrutiny and demand for secure digital asset storage.
Ripple Custody Expands in South Korea
Announced on Feb. 26, the partnership will integrate Ripple Custody, Ripple’s institutional-grade digital asset custody solution, into BDACS’ services. This will allow BDACS to offer secure storage solutions for XRP, RLUSD, and other cryptocurrencies to financial institutions in South Korea.
Ripple’s President Monica Long emphasized the importance of regulated and secure custody services as institutional interest in digital assets continues to grow.
“South Korea is gearing up for a wave of institutional crypto adoption — very excited for Ripple Custody to plant another flag in APAC with BDACS for XRP and RLUSD,” Long stated.
The partnership is expected to provide institutions with a secure and compliant custody framework, ensuring compliance with evolving South Korean regulations while promoting broader digital asset adoption.
Regulatory Alignment and Institutional Growth
Ripple and BDACS believe their collaboration aligns with the South Korean Financial Services Commission (FSC) roadmap, which focuses on regulating institutional participation in the digital asset space.
Ripple highlighted that the partnership will support XRP Ledger (XRPL) developers, promote the usability of Ripple’s stablecoin (RLUSD), and explore potential synergies with Busan’s blockchain regulation-free zone, a government-backed initiative aimed at fostering blockchain innovation.
BDACS CEO Harry Ryoo reaffirmed the company’s commitment to building secure infrastructure for institutional adoption:
“BDACS will provide a secure and reliable custody service to support Ripple’s pioneering blockchain initiatives. Ultimately, this partnership will enable both companies to enhance and expand the digital asset ecosystem.”
The Future of Ripple Custody
Ripple Custody is positioning itself as a key player in the institutional digital asset custody space, projecting that the total amount of custodied cryptocurrencies will reach $16 trillion by 2030.
As part of its long-term expansion strategy, Ripple has also unveiled a roadmap for institutional decentralized finance (DeFi) on the XRP Ledger. The proposal includes:
- A permissioned decentralized exchange (DEX)
- A credit-based DeFi lending protocol
- A multi-purpose token (MPT) standard
Ripple’s institutional DeFi plans will build on existing XRPL infrastructure, including price oracles and automated market makers, enhancing liquidity and increasing institutional engagement.
Conclusion: A Milestone for Institutional Crypto Adoption
Ripple’s partnership with BDACS signals a strong institutional push into South Korea, reinforcing its presence in the Asia-Pacific (APAC) region. With regulatory alignment, secure custody solutions, and the development of an institutional DeFi ecosystem, Ripple is positioning itself as a dominant force in institutional crypto adoption.
As South Korea continues tightening regulations on digital assets, partnerships like Ripple and BDACS could pave the way for greater mainstream adoption while ensuring that institutions can operate within a secure and compliant framework.
