BDACS Partners with Ripple for Institutional-Grade Digital Asset Security

Strengthening Custody Solutions for a Growing Market

BDACS, a leading digital asset custody specialist based in Busan, has entered into a strategic partnership with Ripple to provide institutional-grade security for investors’ digital assets, ensuring their safe storage and management. This collaboration, formalized on February 26, 2025, leverages Ripple’s advanced custody solutions to cater to the rising demand for secure digital asset management in South Korea. The partnership aligns seamlessly with the Financial Services Commission’s (FSC) recent framework to gradually allow corporate participation in the virtual asset market, focusing on delivering robust custody services for XRP and RLUSD, supporting the XRP Ledger (XRPL) developer community and ecosystem growth, enhancing the usability of Ripple’s stablecoin RLUSD, and fostering synergies with Busan’s blockchain regulatory sandbox. According to industry insights, this move positions BDACS and Ripple as key players in addressing the evolving needs of institutional investors while capitalizing on South Korea’s progressive regulatory landscape.

The partnership reflects a shared vision to elevate the digital asset ecosystem through secure and reliable custody solutions. BDACS CEO Ryu Hong-yeol emphasized the company’s commitment to supporting Ripple’s pioneering blockchain initiatives, stating, “Our goal is to offer a trustworthy and secure custody service that underpins Ripple’s efforts, ultimately driving the sophistication and expansion of the digital asset landscape.” Similarly, Fiona Murray, Ripple’s Asia-Pacific Managing Director, highlighted the significance of this collaboration, noting, “We’re thrilled to bring Ripple’s custody solutions to South Korea’s institutional investors. With the FSC’s regulatory roadmap fueling rapid growth and unlocking new opportunities in the cryptocurrency market, this partnership marks a pivotal step toward broadening the digital asset ecosystem.” This alliance comes at a time when South Korea is witnessing a surge in institutional interest, spurred by regulatory clarity and a projected boom in tokenized assets.

A key driver behind this partnership is the FSC’s phased approach to integrating corporations into the virtual asset space. Announced earlier in February 2025, the FSC’s roadmap permits entities like universities and public interest organizations to engage in digital asset sales starting mid-2025, with listed companies and professional investors gaining access to trade assets like Bitcoin later in the year. This regulatory shift builds on the Virtual Asset User Protection Act, enacted in 2023, which enhances oversight of virtual asset service providers and curbs unfair trading practices. By aligning with these developments, BDACS and Ripple aim to provide institutional investors with a secure gateway to digital assets, leveraging Ripple’s custody platform, which offers bank-level security, real-time transaction execution, and integrated anti-money laundering (AML) monitoring. This is particularly relevant as South Korea’s cryptocurrency market is poised for exponential growth, with BDACS forecasting that digital assets under custody could reach $16 trillion by 2030, alongside the tokenization of 10% of global GDP.

Busan’s designation as a blockchain regulatory sandbox since 2019 further amplifies the strategic value of this partnership. As South Korea’s hub for blockchain innovation, Busan has invested heavily in projects like smart tourism platforms, digital voucher systems, and public safety data marketplaces, relaxing 11 regulations to foster experimentation. BDACS, headquartered in this vibrant ecosystem, stands to benefit from Busan’s supportive environment, enabling it to test and deploy cutting-edge custody solutions. The collaboration with Ripple also seeks to enhance the XRP Ledger’s growth by supporting developers and expanding the utility of RLUSD, a USD-pegged stablecoin launched in December 2024 and backed fully by cash equivalents and US dollar deposits. RLUSD’s versatility across XRPL and Ethereum blockchains positions it as a vital tool for cross-border payments and decentralized finance (DeFi), areas where institutional adoption is accelerating.

The broader market outlook underscores the transformative potential of this partnership. Industry projections suggest that the digital asset custody market, valued at $447.9 billion in 2023, could soar to $1.6 trillion by 2030, driven by a compound annual growth rate (CAGR) of 23.65%. Meanwhile, tokenized assets, including private market securities and collateralized financial instruments, are expected to reach $4 trillion by the same year, according to Citi’s GPS report. These trends highlight the critical role of custody as the backbone of digital asset businesses, enabling innovations in tokenization, asset management, and stablecoin issuance. BDACS and Ripple’s joint efforts are well-positioned to capitalize on this growth, offering institutional investors a secure and compliant platform to navigate the evolving landscape.

For BDACS, this partnership builds on its established expertise as a financial software firm founded in 2022, specializing in custody systems for cryptocurrencies, security tokens, and stablecoins. With backing from investors like Avalanche Fund and IDG Vietnam Capital Blockchain, BDACS brings a robust technological foundation to the table. Ripple, on the other hand, strengthens the alliance with its global reach and recent acquisition of Standard Custody in 2024, bolstering its regulatory credentials through licenses from the New York Department of Financial Services (NYDFS). Together, they aim to set a new standard for institutional-grade digital asset custody in South Korea, leveraging Busan’s blockchain-friendly ecosystem and the FSC’s forward-thinking policies to drive adoption and innovation.

This strategic collaboration between BDACS and Ripple not only addresses the immediate needs of institutional investors but also lays the groundwork for long-term growth in South Korea’s digital asset market. By combining BDACS’s local expertise with Ripple’s global infrastructure, the partnership promises to enhance security, expand blockchain utility, and support the tokenization wave projected to reshape the global economy by 2030. As the digital asset landscape continues to evolve, this alliance stands as a testament to the power of collaboration in unlocking new possibilities for investors and developers alike.