South Korea’s KODA Collaborates with Samsung Fire & Marine to Launch $20 Million Digital Asset Insurance

In a landmark move, Korea Digital Asset (KODA), a key player in digital asset custody, has partnered with Samsung Fire & Marine Insurance to introduce South Korea’s most substantial insurance policy dedicated to digital assets. This partnership, announced on October 23, marks a pivotal step in addressing the pressing need for enhanced security in the fast-evolving cryptocurrency ecosystem. The new policy offers a maximum coverage of $20 million—equivalent to approximately 27.6 billion KRW.

Since its inception in November 2020 by prominent blockchain investor Hashed and major financial institution KB Kookmin Bank, KODA has emerged as a leader in providing secure, institutional-grade custody solutions for cryptocurrencies. By launching this tailormade insurance plan with Samsung Fire & Marine, the company is tackling long-standing trust and safety issues in the digital asset custody market.

Bridging Regulatory Gaps for Robust Asset Protection

South Korea’s "Act on the Protection of Digital Asset Users" mandates that virtual asset service providers maintain insurance coverage. However, companies utilizing 100% cold wallet storage systems face a significant hurdle as their maximum insurable limit is restricted to just 500 million KRW (approximately $370,000). This cap leaves custody firms like KODA—managing digital assets worth hundreds of billions of won—disproportionately exposed to financial risks.

To address these regulatory inefficiencies, KODA has struck this strategic insurance deal, which not only provides a higher level of protection but also signals the company’s anticipation of regulatory advancements. With the market expecting approval for corporate digital asset accounts and the potential debut of Bitcoin (BTC) exchange-traded funds (ETFs), this partnership positions KODA as a frontrunner in catering to evolving institutional needs.

Scalable Insurance for a Growing Digital Asset Market

The current $20 million coverage provided under the KODA-Samsung Fire & Marine partnership is just the beginning. Both companies have revealed plans to expand the coverage scope progressively, scaling in tandem with the growth of KODA’s managed asset volume. This approach ensures that the insurance framework adapts to the increasing risks associated with the dynamic cryptocurrency landscape.

Bolstering Confidence in Custody Services

KODA’s CEO, Cho Jin-seok, underscored the partnership's significance, stating, “Our collaboration with Samsung Fire & Marine has significantly enhanced the reliability and efficiency of KODA’s custody services. We are committed to safeguarding client assets and solidifying our leadership as the most trusted digital asset custody provider in South Korea.”

This insurance initiative highlights a profound shift in the South Korean cryptocurrency landscape, as increased regulatory scrutiny coincides with growing institutional involvement. By prioritizing robust risk management and investor protection, KODA is setting a new standard for trust and security in digital asset custody solutions. The move is expected to accelerate institutional adoption of cryptocurrencies, fostering deeper integration within the traditional financial system.

A Milestone for South Korea’s Cryptocurrency Ecosystem

KODA’s pioneering insurance agreement with Samsung Fire & Marine is not just a response to market demands but also a critical evolution in South Korea’s crypto ecosystem. By offering enhanced protection and aligning with institutional and regulatory developments, this partnership addresses one of the most persistent barriers to widespread adoption of cryptocurrencies: security and trustworthiness.

Industry analysts view this initiative as a trailblazing effort to fortify confidence among institutional investors, which will likely have long-term implications for the adoption and mainstream integration of digital assets. In this rapidly maturing market, KODA’s insurance-backed security measures stand as a beacon for other players to follow, solidifying its role as a leader in South Korea’s digital asset industry.