Privacy-focused blockchain developer Miden has signed a memorandum of understanding with Korea Digital Asset (KODA) to collaborate on institutional-grade crypto infrastructure in South Korea. The partnership aims to develop privacy-preserving and compliant standards for regulated digital-asset adoption as the country’s financial institutions prepare to reenter the market.
KODA is South Korea’s largest institutional digital-asset custodian and was jointly founded by KB Kookmin Bank and blockchain investment firm Hashed. The agreement brings together KODA’s custody and regulatory expertise with Miden’s blockchain infrastructure, which is designed to support financial use cases that require both confidentiality and regulatory oversight.
The timing reflects shifting regulatory signals in South Korea, where authorities are gradually reopening the door to institutional participation after years of restrictions. The Financial Services Commission is considering rule changes that would allow corporations to hold and transact in digital assets, alongside broader discussions around spot bitcoin exchange-traded funds.
Privacy and Compliance as Institutional Priorities
Under the agreement, Miden and KODA plan to focus on infrastructure and standards that enable selective privacy while remaining compatible with regulatory requirements. Miden’s platform uses zero-knowledge technology to allow transaction details to remain confidential while still supporting auditability and compliance checks.
This approach addresses a key barrier to institutional adoption of public blockchains, where full transparency can conflict with corporate confidentiality, client data protection, and regulatory expectations. By emphasizing privacy by design, the partnership positions itself as an alternative to existing public blockchain infrastructure that often requires additional compliance layers.
For custodians such as KODA, privacy-preserving infrastructure may also support more complex institutional workflows, including asset segregation, reporting, and risk management. The collaboration suggests a shift away from retail-oriented crypto infrastructure toward systems designed specifically for banks, asset managers, and regulated financial intermediaries.
Regulatory Reopening Reshapes Competitive Landscape
South Korea’s crypto market has long been driven by retail participation, but institutional involvement has lagged due to regulatory constraints introduced in 2017. Those measures restricted corporate trading and imposed strict controls on exchange access, reflecting concerns about speculation and money laundering.
Recent regulatory developments have begun to change that dynamic. Approval for corporate digital-asset accounts and renewed policy discussions around crypto-linked investment products have increased interest from traditional financial institutions seeking early positioning. Against this backdrop, infrastructure providers are competing to offer compliant solutions aligned with domestic regulatory expectations.
Miden’s focus on privacy and future-proof security standards places it in competition with both global blockchain platforms and regional infrastructure providers seeking institutional traction in Asia. For KODA, partnering with a purpose-built blockchain project supports its strategy of remaining the default custody and infrastructure provider as institutional demand expands.
As South Korea moves toward a more formalized institutional digital-asset framework, partnerships that combine custody, compliance, and privacy-focused technology are likely to play a central role. The Miden-KODA agreement underscores how infrastructure decisions are becoming as important as regulatory clarity in shaping the next phase of crypto market participation.
