South Korea is preparing for a wave of institutional cryptocurrency adoption, a move bolstered by a strategic partnership between Ripple and BDACS, the country’s first regulated custodian for institutional digital assets. Monica Long, Ripple’s president, confirmed the shift, stating that “South Korea is gearing up for a wave of institutional crypto adoption,” emphasizing the need for enterprise-grade custody solutions to ensure secure transactions at scale.
BDACS will integrate Ripple Custody, a platform designed with institutional protections, to manage XRP, RLUSD, and other digital assets. The partnership aligns with South Korea’s regulatory evolution and aims to solidify its position as a leader in blockchain-based finance. Ripple’s expansion into the Asia-Pacific (APAC) region reinforces its commitment to regulatory compliance and institutional crypto adoption.
BDACS and Ripple Strengthen Institutional Custody
BDACS announced its partnership with Ripple on Feb. 26, 2025, signaling a significant development in South Korea’s institutional crypto sector. As the country’s pioneering regulated custodian, BDACS will leverage Ripple Custody to enhance the security and efficiency of digital asset storage for enterprises.
Ripple’s statement noted that the collaboration is closely aligned with South Korea’s structured approach to digital asset regulation. The initiative integrates Ripple’s blockchain expertise and BDACS’s regulatory knowledge to establish a compliant and secure crypto infrastructure. Ripple Custody will support XRP, the company’s native token, and RLUSD, its stablecoin pegged to the U.S. dollar.
Harry Ryoo, CEO of BDACS, emphasized the importance of the partnership, stating that it will provide “secure and reliable custody services” to reinforce Ripple’s blockchain initiatives. Fiona Murray, Ripple’s APAC managing director, highlighted that the agreement aligns with South Korea’s rapidly evolving crypto sector, where regulatory authorities are enabling greater corporate participation in digital assets.
Regulatory Developments and Market Implications
South Korea’s Financial Services Commission (FSC) has outlined a 2025 strategy to formalize institutional participation in cryptocurrencies, including stablecoin regulation. This regulatory framework provides a structured environment for enterprises engaging in digital asset transactions, further supporting BDACS and Ripple’s expansion efforts.
Ripple’s announcement noted that government-backed blockchain initiatives, such as Busan’s experimental blockchain zone, are expected to drive institutional crypto adoption. BDACS, headquartered in Busan since 2022, has already established itself as a key player in digital asset custody, recently allying with Woori Bank to advance digital asset solutions.
Ripple’s involvement brings significant blockchain expertise to the partnership, backed by more than 60 regulatory approvals globally. The company’s 2024 acquisition of Standard Custody & Trust further strengthens its institutional-grade solutions, enhancing the credibility of its offerings in the South Korean market.
Market analysts project that the global crypto custody industry could reach $16 trillion by 2030, with tokenized assets potentially constituting 10% of global economic activity. The partnership between Ripple and BDACS is expected to accelerate institutional engagement with the XRP Ledger (XRPL) and RLUSD, which debuted in December 2024.
