Korea Digital Asset (KODA), a crypto custody platform jointly established by Hashed and KB Kookmin Bank, has signed a digital asset insurance contract with Samsung Fire & Marine Insurance. The policy covers up to $20 million (approx. KRW 27.5 billion) in damages and is considered Korea’s first institutional-level protection for crypto assets combining internal controls and regulated insurance coverage.
Under the current “Virtual Asset User Protection Act,” crypto custodians are required to hold insurance. However, coverage limits have remained low—capped at KRW 500 million when using cold wallet storage. This has proven insufficient for entities safeguarding hundreds of billions of won in digital assets.
KODA initiated this insurance partnership to meet the anticipated rise in institutional demand amid evolving regulatory developments, including upcoming legalization of corporate crypto accounts and potential Bitcoin ETF launches in Korea. The initial coverage is set at $20 million, with plans to scale based on total assets under custody.
The firm emphasized its segregated wallet architecture, where each client has a dedicated wallet and independent private key. This structure ensures that even if a breach occurs in one wallet, other clients’ assets remain unaffected.
KODA CEO Cho Jin-seok stated that the agreement “sets a new benchmark of trust for digital asset custody services” in Korea and affirmed the company’s commitment to becoming a reliable partner for institutional investors.
