Institutional Crypto Investment Guide: Essential Blockchain Infrastructure for Corporate Digital Asset Management

[TL;DR]

• Following the roadmap set by the Financial Services Commission (FSC), corporate participation in the crypto market is being gradually permitted, necessitating the establishment of appropriate blockchain infrastructure, such as custody solutions, WaaS, and node operations.
• Corporations must secure specialized personnel, establish internal control frameworks, and prepare organizationally to comply with regulatory requirements for digital asset management.
• Recognizing crypto assets not just as an investment tool but as a fundamental infrastructure of the digital economy is crucial. Developing long-term strategies, risk management frameworks, and a strong compliance culture will be key to corporate competitiveness.
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1. Introduction

On February 13, 2025, the Financial Services Commission (FSC) announced the "Roadmap for Corporate Participation in the Crypto Market" during its 3rd Virtual Asset Committee meeting. This roadmap marks a major milestone as it finally allows corporate accounts in the crypto market, something the industry has long awaited.

According to the roadmap, starting in the first half of this year, certain entities such as law enforcement agencies, designated donation organizations, and universities will be allowed to conduct sell-side transactions. In the second half of the year, publicly listed companies and registered professional investors will also be permitted to trade crypto assets. This marks the reopening of the domestic crypto market for corporations and institutions after nearly eight years since the 2017 regulatory crackdown.

The FSC cited several key reasons for this policy shift, including global trends where institutional participation dominates the crypto ecosystem, the increasing demand for blockchain-related businesses in South Korea, and efforts to align with international regulations. The approval of spot Bitcoin ETFs in the U.S. and the pro-crypto stance of the Trump administration have also influenced this decision.

This regulatory shift presents new opportunities for the domestic blockchain industry. However, the FSC has emphasized a phased and gradual approach, requiring sufficient safeguards against money laundering and conflicts of interest. As a result, corporations and institutions must thoroughly prepare before entering the crypto market.

To participate safely and efficiently, corporations need to establish appropriate blockchain infrastructure. This includes securing robust solutions for digital asset storage, regulatory compliance, and efficient transactions.

In global markets, institutional investors have already become major players in the crypto industry, and various supporting infrastructures have been developed to accommodate them. South Korean corporations and institutions must now align with these global trends by investing in and understanding blockchain infrastructure.

This guide will outline the key blockchain infrastructure components essential for corporate participation in the crypto market. It will explain the importance of each element, selection criteria, and expected benefits from an institutional perspective. With the government’s roadmap set in motion, this guide aims to help corporations effectively build the necessary infrastructure for their market entry.
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2. Corporate Digital Asset Custody Solutions

2.1. The Necessity of Custody from the Perspective of Asset Protection and Risk Management

Unlike traditional assets, digital assets are accessed and managed through a private key. When a corporation holds crypto assets, securely managing these private keys becomes a critical challenge. If a private key is lost or compromised, the associated assets could be permanently lost, leading to severe financial and reputational damage.

A custody solution is a key infrastructure that ensures the secure storage and management of digital assets. For corporations entering the crypto market, professional custody services are essential to minimize private key management risks and protect assets from threats such as hacking, internal fraud, and system failures.

Moreover, custody solutions help corporations meet anti-money laundering (AML) and internal control requirements. According to the roadmap, corporate participation in crypto trading must be accompanied by adequate safeguards against money laundering and conflicts of interest. Custody solutions provide the technical foundation necessary to meet these regulatory requirements.

Unlike individual investors, corporations involve multiple stakeholders in asset management. Ensuring transparency and security in transaction approval processes is crucial, requiring governance models such as multi-signature authorization. Custody solutions effectively support these requirements.

Additionally, corporate digital asset transactions require transparent record-keeping and audit compliance. Custody solutions provide audit tracking and regulatory reporting capabilities, significantly reducing the compliance burden for corporations.
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2.2. Comparison of Custody Solutions by Technology Type and Selection Criteria

Corporations have three primary custody options:

1. Self-Custody: Corporations manage their private keys internally using hardware wallets or multi-signature wallets. While this option provides full control over assets, it requires a high level of technical expertise and security infrastructure.
2. MPC (Multi-Party Computation) Custody: Uses cryptographic techniques to split a private key into multiple parts, reducing the risk of asset loss from a single point of failure. This method offers a balance between security and operational efficiency.
3. Third-Party Custody: Entrusts asset storage to professional custody service providers. This approach reduces technical burdens and ensures regulatory compliance but comes with counterparty risks and higher fees.

When selecting a custody solution, corporations must consider several factors:

• Security Standards: Cold storage ratio, multi-factor authentication, security audits, and past security incidents.
• Regulatory Compliance: Integration with AML/KYC, transaction monitoring, and regulatory reporting.
• Governance Features: Multi-signature transactions, transaction limits, and role-based access controls.
• System Integration: Compatibility with corporate ERP and accounting systems.
• Cost Structure: Setup costs, maintenance fees, and transaction fees.
• Scalability: Support for various crypto assets and adaptability to increased transaction volumes.
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2.3. Cost Reduction and Operational Efficiency through Custody Solutions

Although custody solutions require an initial investment, they reduce long-term costs and create value in several ways:

• Risk Management Cost Reduction: By mitigating the risk of asset loss, corporations can avoid significant financial damage.
• Lower Insurance Costs: Many professional custody services include insurance coverage, reducing the need for additional policies.
• Regulatory Compliance Cost Savings: Automated audit tracking and reporting streamline compliance procedures, cutting down associated expenses.
• Operational Efficiency Gains: Reduces the need for in-house security personnel, automates approval workflows, and improves transaction processing speed.

For large-scale crypto asset holders, custody solutions not only enhance security but also streamline operations, providing sustained value over time.

Corporations must select custody solutions that align with their specific needs. Non-profit entities handling crypto for liquidation may need simple solutions, while professional investment firms require more sophisticated infrastructure. Preparing in advance for regulatory changes ensures a seamless integration of custody services.
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3. Establishing and Utilizing WaaS (Wallet as a Service)

3.1. Business Value and Use Cases of WaaS

Wallet as a Service (WaaS) enables corporations to leverage blockchain wallets without developing and managing their own infrastructure. As corporate participation in crypto markets expands, WaaS solutions offer significant value.

By utilizing WaaS, corporations can reduce the technical burden of blockchain development, saving time and costs while accessing enterprise-grade security and scalability. This is particularly beneficial for corporations unfamiliar with blockchain technology or those prioritizing other business functions.

Corporations can use WaaS to offer blockchain-based services directly to customers (B2C). For example:

• Financial institutions and fintech companies can integrate crypto asset management within their platforms, allowing users to access blockchain services without needing separate apps.
• Retail companies can tokenize loyalty programs, enabling customers to use and exchange points seamlessly.
• Content and media companies can tokenize digital ownership rights, facilitating direct creator-to-consumer transactions.
• E-commerce platforms can incorporate WaaS into their payment systems, allowing crypto transactions to streamline international payments.
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3.2. Developing New Revenue Models and Expanding the Market with WaaS

WaaS can help corporations develop innovative revenue models by enhancing customer experience and engagement:

• Tokenized loyalty programs provide greater flexibility and value than traditional point-based systems.
• NFTs for digital content ownership enable transparent royalty distribution and secure transactions.
• Crypto-based financial products such as crypto savings, loans, and hybrid investment products can attract new customers.
• Crypto payments for international commerce reduce exchange rate costs and increase transaction efficiency.

As the FSC roadmap progresses, WaaS will become a key infrastructure for corporations providing B2C services, helping them gain a competitive edge and tap into new business opportunities.
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4. Node Operations and Validator Participation Strategies

4.1. Profitability Analysis of Institutional Participation in Blockchain Networks

Operating a blockchain node or participating as a validator allows corporations to generate revenue beyond simple asset holding. With Proof-of-Stake (PoS) networks becoming dominant, staking crypto assets to validate transactions provides stable yield opportunities.

Annual staking returns (APR) range from 3-15%, making it a compelling alternative investment. Institutions holding large crypto reserves can maximize asset utility by participating in blockchain validation.
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4.2. Cost Structure and Risk Management in Node Operations

Corporations can choose between:

1. Self-operated nodes: Provides full control but requires high technical expertise and infrastructure investment.
2. Cloud-based nodes: Uses AWS, Google Cloud, or Azure, offering flexibility but higher long-term costs.
3. Staking service providers: Simplifies participation but reduces control and incurs service fees.

Key risks include slashing penalties, infrastructure failures, and security breaches. Implementing redundant systems, monitoring tools, and diversification across multiple networks can mitigate these risks.
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4.3. Enhancing Brand Value and Industry Influence through Validator Participation

Being a validator in a major blockchain network:

• Positions the corporation as a pioneer in blockchain innovation.
• Grants governance rights to influence network upgrades.
• Strengthens strategic partnerships within the blockchain ecosystem.

As regulations allow corporate crypto participation, staking and validator roles will become attractive opportunities for financial institutions and enterprises.
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5. Blockchain Payment Solutions for B2B Transactions

5.1. Cost Savings of Blockchain-Based B2B Payment Systems

Blockchain-based B2B transactions reduce intermediary fees (from 3-5% to ~0.1-1%), shorten settlement times from days to seconds, and cut forex conversion costs by using stablecoins.
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5.2. B2C Payment Solutions and Regulatory Considerations

While crypto enables global transactions and micro-payments, South Korea’s regulatory stance on consumer crypto payments remains uncertain. Stablecoins and CBDCs may offer a more compliant solution for B2C adoption.
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6. Conclusion

Corporations must adopt a phased approach to crypto market entry, beginning with custody solutions and gradually integrating WaaS, payment systems, and node operations.

Key success factors include:

• Securing blockchain expertise and compliance teams.
• Aligning with the FSC roadmap.
• Implementing strong risk management frameworks.

As South Korea’s crypto regulations evolve, blockchain infrastructure will become a critical competitive advantage for corporations.