The KB Kookmin Bank-backed custodian says the increase is the largest in South Korea’s digital-asset custody industry as corporate trading rules and a broader asset law are still taking shape.
KODA said it signed a digital-asset insurance contract with KB Insurance that lifts its coverage limit to $40 million from $20 million. The company said the new limit is more than 100 times South Korea’s mandatory minimum of $361,000 under the Virtual Asset User Protection Act, making it the largest coverage level in the country’s digital-asset custody industry. The policy is meant to compensate for losses if assets held by KODA are damaged, lost or stolen. KODA, also known as Korea Digital Asset, said the move comes as institutional demand is expected to rise if South Korea allows more corporate virtual-asset trading and as talks continue over the Digital Asset Basic Act. Chief Executive Officer Cho Jin-seok said institutional clients focus first on insurance coverage, and said the higher limit brings KODA closer to traditional finance standards and positions it to hold institutional funds once the corporate market opens. KB Insurance said the deal reflects stronger demand for protection and its underwriting capabilities. KODA said it will keep expanding coverage as regulations and market conditions evolve.