Major South Korean financial group Hana Financial is buying a stake in Dunamu, operator of cryptocurrency exchange Upbit, in its latest venture into the digital assets sector, amid a broader trend of traditional financial institutions delving into the digital assets market.
In a regulatory filing on Friday, Hana Financial announced that it is purchasing more than 2.2 million Dunamu shares, or approximately 6.55% of the company, from investment firm Kakao Investment, worth more than KRW 1.003 trillion ($668 million).
Hana Financial’s 6.55% stake in Kakao makes it Dunamu’s fourth-largest shareholder. South Korean newspaper Chosun Daily reported last September that Donamo’s major shareholders include its chairman, Song Chi-hyung, with 25.5%; Vice Chairman Kim Hyung-nyeon, 13.1%; Kakao with 10.6% and Woori Technology Investment with 7.2%.
The acquisition aims to secure “competitiveness in new financing through strategic equity investment,” Hana Financial said in the filing. Meanwhile, Kakao also filed for the sale and said it is keeping 1.4 million shares on its books while offloading the rest to secure “funds for future investments.”
Hana Financial is purchasing more than 2 million Dunamu shares, or approximately 6.55% of the company. source: She turned
A growing number of banks and traditional financial institutions are starting to get involved in cryptocurrencies after years of skepticism. Mirae Asset Consulting, a subsidiary of South Korean multinational financial services company Mirae Asset Group, acquired a controlling stake in cryptocurrency exchange Korbit in February.
Earlier in the year, fellow exchange Coinone announced it was exploring selling shares held by its chairman, with local financial institutions and foreign exchanges rumored to be involved. South Korean technology company Naver Financial also agreed last year to acquire Dunamu through a stock swap, bringing the Upbit operator under its umbrella.
Hana Financial is very active in the cryptocurrency sector
The financial group has been very active in the cryptocurrency sector. Hana Financial signed a tripartite memorandum of understanding in April to launch a blockchain-based remittance system with POSCO International and Dunamu.
Related to: South Korea’s cryptocurrency holdings have halved in a year as investors turn to the stock market
Meanwhile, in March, it struck a deal with the UK’s Standard Chartered Group to cooperate in global financial and digital asset markets, and also signed agreements with USDC issuer and major US cryptocurrency exchange Crypto.com to promote stablecoin-based payments for foreign visitors in South Korea.
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