This collaboration marks a significant step in Ripple's expansion within the Asia-Pacific (APAC) region, aligning with South Korea's evolving regulatory landscape for institutional crypto adoption.

The partnership, which began on February 26, will see BDACS integrate Ripple Custody, a product that was developed for safe holding and storing digital assets.

Institutions in South Korea will be able to use a local bank for crypto custody services following the partnership of Ripple with BNDCS, a subsidiary of the Korea Development Bank (KDB).

This partnership, which begins on February 26, will see BDACS integrate Ripple Custody, a product that was developed for safe holding and storing digital assets. Ripple Custody, which rolled out in October 2024, provides banks with a secure platform to keep their assets in a manner that is compliant with regulatory obligations.

“Korea is poised for a wave of institutional crypto adoption—ready for Ripple to grab another flag for APAC with BDACS for XRP and RLUSD,” said Monica Long, President of Ripple, in a statement.

This move showcases Ripple’s ongoing efforts to expand the infrastructure required for greater business entry into crypto.

Announced via X (formerly Twitter) on February 25, the partnership is also consistent with the South Korean Financial Services Commission’s (FSC) institutional participation roadmap for digital assets. Through its collaboration with BDACS, Ripple aims to provide the required custody infrastructure that complies with local regulations and fosters the broader use of blockchain technology in the country.

“With the crypto market thriving and new opportunities emerging under the FSC’s regulatory roadmap, we view this partnership as a vital step in furthering the digital asset ecosystem,” added Fiona Murray, Managing Director APAC at Ripple.

Institutions will be able to use the custody services with the approval of the Korean authorities, and investors will have the infrastructure to trade XRP, RLUSD, and other digital assets securely. This could encourage further institutional involvement and solidify South Korea as a top hub for blockchain and crypto innovation.

“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,” said Harry Ryoo, CEO of BDACS.

Apart from its partnership with BDACS, Ripple has also established a blueprint for institutional decentralized finance (DeFi) on the XRP Ledger. This includes creating a permissioned decentralized exchange (DEX), a credit-based DeFi lending protocol, and a new token standard, the multi-purpose token (MPT). These will construct an optimized, scalable, and regulated DeFi structure for institutional players.

As institutional investment in digital assets picks up pace, the need for specialized and trustworthy custody solutions is expected to expand exponentially. Industry estimates project that the size of custodied cryptocurrencies will reach $16 trillion by 2030.

In a world where institutions are increasingly interested in getting involved in the crypto market, partnerships like the one announced between Ripple and BDACS will be crucial in setting the stage for broader adoption and integration of digital assets into the global financial system.