In South Korea's tightly regulated digital asset market, the SOC 1 Type 2 certification for financial reporting is a gatekeeper's key. Korea Digital Asset Custody (KDAC) is the only crypto custodian in the country to hold it [Injective blog]. That fact defines its four-year climb to a reported 80% share of the local custody market [The Block, February 2024]. The company now stores crypto assets for nearly 100 large institutional clients [Injective blog]. Its recent pre-Series A round, closed in November 2025, drew capital from Taekwang Industrial, Total Service & Information System, Heungkuk Life Insurance, Shinhan Venture Investment, NH Venture Investment, and NH Investment & Securities [Preqin, November 2025].
A Compliance-First Wedge
KDAC's offering is institutional custody, secured with air-gapped environments and multi-signature technology [Crunchbase]. It supports major networks like Bitcoin and Ethereum and extends into staking and validator services [CryptoRank.io]. Beyond the SOC 1 Type 2, KDAC holds the Information Security Management System (ISMS) certification [CryptoRank.io]. It markets itself as the "First VASP Certified as a Venture Business" in Korea [KDAC website].
The Backing of the Establishment
The investor list reads like a roll call of Korean economic pillars. Taekwang Industrial, Heungkuk Life Insurance, and banking groups Shinhan and NH signal a strategic bet on the infrastructure underpinning digital asset adoption. The Korea Information Certificate Authority (KICA) led an earlier seed round [Crunchbase].
Traction in a Nascent Institutional Market
The Korea Financial Intelligence Unit reported the company held an 80% share of the local crypto asset custody sector at the end of June 2023 [The Block, February 2024]. KDAC's own website claims over 80% market share in assets under custody as of the second half of 2024 [KDAC website]. The core evidence for this dominance is the client tally: nearly 100 large institutional companies [Injective blog].
Where the Wheels Could Come Off
- Banking competition: The company's own investors, Shinhan Bank and NH Bank, are also listed among its key competitors [Injective blog].
- Global platform play: Competitors like Fireblocks offer a broader, globally integrated platform [PRNewswire, June 2023].
- Market concentration: KDAC's success is tied to the growth of Korea's institutional crypto market.
The Next Twelve Months
The undisclosed pre-Series A round closed in November 2025 sets the stage for a new phase [WOWTALE, November 2025]. Kim Jun-hong leads the company as CEO [Venturesquare, 2026]. The firm has completed four deals since its 2020 founding [Preqin, November 2025]. With the SOC 1 Type 2 stamp in hand, KDAC has built the vault; the next test is whether the market stores its most valuable digital assets inside.