South Korea's Kiwoom Securities is in discussions to acquire a stake in Bithumb, the country's second-largest cryptocurrency exchange, according to a report from ChosunBiz. The deal would take the form of a third-party share allocation, with Bithumb issuing new equity that Kiwoom would purchase. Investment size and stake percentage remain under negotiation. This is the latest in a succession of traditional finance institutions purchasing equity in South Korean crypto platforms, following Hana Bank's $670 million stake in Upbit parent Dunamu and Samsung subsidiaries' combined $407.7 million investment for a 4 percent stake in the same company. International players are also entering: OKX Ventures took a 19.6 percent stake in Coinone, and Binance completed its acquisition of Gopax after years of regulatory delay.
The wave of institutional buying suggests a structural shift in how South Korea's financial establishment views crypto infrastructure. These are not venture bets on speculative protocols — they are equity purchases in platforms with live retail flows. South Korea is developing the Digital Asset Basic Act, which has been stalled without proper discussion for much of this year, though Korean legislators are looking to advance the bill in the second half of the year according to Blockchain Today. The legislation may place a limit on the percentage of stake a single shareholder can hold in a cryptocurrency exchange — 20 percent is the baseline, but up to 34 percent can be allowed under special circumstances, amid ongoing discussions. Bithumb itself is preparing for an IPO, with a signed advisory agreement with Samjong KPMG through the end of 2027 and an expected listing in 2028 per CFO Jeong Sang-gyun. The institutions buying in now may be positioning ahead of that liquidity event.
For traders, this matters as a signal of where infrastructure capital is concentrating. South Korea appears to be the only major market where traditional finance is moving into crypto equity at scale through direct ownership of trading venues rather than custody products or ETF wrappers. That suggests Korean platforms may have the balance-sheet strength to weather regulatory costs, expand internationally, and integrate with banking rails — all of which could increase their competitive moat relative to offshore exchanges. It also may reduce the likelihood of abrupt Korean regulatory crackdowns, since major banks and brokerages now have direct exposure to platform valuations. The risk is that consolidation narrows the field: if only a few platforms attract institutional capital, smaller exchanges face a funding disadvantage and potential market-share erosion.
Watch for confirmation of the Kiwoom stake size and any indication of whether Samsung or other institutions follow with similar moves. If the Digital Asset Basic Act passes with the ownership cap framework, there may be a second wave of equity deals as institutions race to lock in stakes before any window closes.
Source: The Block