Bithumb Targets Corporate Clients to Outpace Upbit in South Korea’s Crypto Sector

Bithumb, South Korea’s second-largest cryptocurrency exchange, is taking decisive steps to strengthen its foothold in the burgeoning corporate crypto market. As regulatory reforms for corporate participation in digital asset trading draw closer, Bithumb is advancing a series of initiatives to position itself as an industry leader. These efforts aim to narrow the competitive gap with market leader Upbit and redefine the exchange as the preferred choice for institutional players. Recent developments—including corporate lending services and a forthcoming corporate conference—highlight the company’s ambition to dominate this emerging segment.

Strategic Initiatives to Lead the Corporate Crypto Market

The domestic digital asset landscape is undergoing a transformation, with the corporate investment sector expected to open partially later this year. Recognizing the shifting dynamics, Bithumb has already rolled out services tailored to corporate clients. Its new cryptocurrency lending service, launched last month, enables businesses to borrow funds using their existing crypto holdings as collateral. Additionally, plans for a major corporate conference underscore the exchange’s commitment to setting itself apart from competitors and showcasing its specialized offerings.

As the competition intensifies, Bithumb’s strategy appears aimed at narrowing the gap with Upbit, South Korea's largest cryptocurrency exchange, while also eroding the market share of other rivals such as Korbit. Industry analysts predict that such moves will accelerate market growth and reshape the corporate investment ecosystem.

Bithumb’s Pioneering Corporate Conference

A significant highlight in Bithumb’s corporate strategy is its upcoming conference dedicated exclusively to institutional clients. Scheduled for October 30, the event marks a milestone as the first of its kind hosted by a South Korean crypto exchange. The conference will feature advisory sessions on cryptocurrency investment strategies, spotlighting tailored services designed for corporate users.

So far, nearly 200 companies have enrolled as Bithumb’s corporate clients. The platform aims to further expand its reach through this event, which coincides with the Financial Services Commission’s gradual opening of corporate crypto trading channels. The competitive drive to attract corporate participants is evident, as industry frontrunners like Upbit, Bithumb, and Korbit are all launching features designed to appeal to business entities and rolling out dedicated “Biz” pages to support corporate trading activities.

Competing Strategies: Upbit and Korbit

Both Upbit and Korbit have also ramped up their efforts to court corporate clients. Upbit recently announced the launch of a dedicated call center for institutional users, indicating a strong focus on customer support. The platform is further advancing its offerings by planning to introduce custody solutions, a critical service required by institutional investors for secure asset storage.

On the other hand, Korbit has concentrated its efforts on attracting high-volume clients by incorporating TWAP (time-weighted average price) trading features—a tool that optimizes pricing over time for large transactions. The exchange has also introduced certification issuance services designed to simplify accounting and settlement concerns, aligning with the corporate entities’ operational needs.

Bithumb’s Corporate Crypto Lending: A Game-Changer

Bithumb distinguishes itself by introducing its corporate cryptocurrency lending product, a groundbreaking service in the South Korean market. With its newly launched USDT lending solution, businesses can borrow up to 95% of their collateral value in Korean won for a term of two months, subject to a daily interest rate of 0.03%. The service is seen as a tactical approach to attract corporations seeking operational flexibility and efficient cash flow management.

This lending initiative addresses unique challenges faced by institutional clients, such as delays in market responsiveness due to lengthy internal approval processes. A venture capital executive emphasized the importance of agility in corporate trading, stating, “The ability to execute timely decisions can greatly influence a company’s choice of exchange. Bithumb’s lending product offers a practical solution by reducing barriers and ensuring corporations can act swiftly when needed.”

Such innovative offerings showcase Bithumb’s efforts to differentiate itself, providing corporations with tools that extend beyond traditional trading services.

Overcoming Regulatory Hurdles

Bithumb’s corporate initiatives also have a forward-looking component, addressing current limitations imposed by South Korea’s Special Financial Information Act. Under this regulation, corporations are restricted from directly trading in Korean won. However, transactions involving stablecoins like USDT remain feasible without the necessity of verified account setups. This workaround not only complies with existing rules but also enhances market accessibility for various corporate entities. By facilitating USDT-based trading, Bithumb has strategically positioned itself to serve professional investors, listed corporations, and general businesses—all of whom are expected to enter the market more actively once corporate investment guidelines are fully established.

According to industry experts, while the regulatory framework progresses, the time required for general corporations to adapt remains substantial. Bithumb’s proactive measures to cater to evolving demands are likely to secure a competitive edge as the landscape matures.

Risks Linked to Regulatory Compliance

Despite these ambitious moves, Bithumb’s strategy is not without potential risks. The reliance on stablecoins for corporate trading introduces vulnerabilities tied to anti-money laundering (AML) protocols and foreign exchange regulations. Exchanges operating in this domain will need robust compliance mechanisms in place to mitigate these risks effectively.

An insider noted, “A lack of preparation to meet regulatory requirements could undermine Bithumb’s ability to secure corporate clients. It is essential for crypto platforms to prioritize building capacity to handle AML obligations and other legal challenges.”

Positioning for Success Amid Intense Competition

Despite the regulatory uncertainties, Bithumb’s approach could carve out a significant niche as South Korea’s digital asset market transitions to a corporate-inclusive paradigm. By introducing groundbreaking services, hosting novel corporate events, and proactively addressing institutional demands, the exchange is placing itself at the forefront of the competition.

As rivals like Upbit and Korbit continue to enhance their offerings, Bithumb’s ability to differentiate itself through flexibility, innovation, and responsiveness will be crucial. The exchange’s focus on tailored solutions for corporate clients underscores its ambition to emerge as the go-to platform in South Korea’s increasingly complex cryptocurrency sector.