South Korea’s dominant digital asset custodian, Korea Digital Asset Co. (KODA), has secured SOC 1 Type 2 certification, marking a major compliance milestone as institutional demand for secure crypto infrastructure intensifies. The certification, announced on June 2, 2026, validates the design and operational effectiveness of KODA’s internal controls over client asset safekeeping and financial reporting.
Jointly established by retail banking giant KB Kookmin Bank and venture capital firm Hashed, KODA commands a massive footprint in East Asia. The firm currently controls more than 80% of South Korea’s institutional digital asset custody market. For corporate clients and institutional allocators, third-party audits like the Service Organization Control (SOC) framework are no longer optional; they are a baseline requirement for capital deployment.
The external audit scrutinized KODA’s entire operational pipeline. This included cold-room management, wallet creation and withdrawal protocols, access controls, and physical security. To meet these rigorous standards, KODA upgraded its cold-wallet infrastructure by integrating Hardware Security Modules (HSMs) certified under the U.S. Federal Information Processing Standards (FIPS) 140-2 and 140-3. This hardware underpins a newly implemented multisignature-based cold-wallet system.
Physical security measures at KODA’s storage facilities were also upgraded. The company’s cold room now features fireproof safes, electromagnetic pulse (EMP) blocking systems, automatic fire suppression, and uninterruptible power supplies. "The core of digital-asset custody is not simply storage," said KODA Chief Executive Officer Cho Jin-seok. He emphasized that custody requires a continuous, externally verified technical and operational framework to protect client assets.
As South Korea continues to refine its regulatory framework for digital assets, institutional custodians face growing pressure to align with global standards. Market participants will likely watch whether KODA’s competitors, such as KDAC, pursue similar high-level certifications to challenge its 80% market share. The next major catalyst for the region's custody sector will be the implementation of updated local guidelines on corporate crypto holdings, which could trigger a fresh wave of institutional inflows.
KODA Secures SOC 1 Type 2 Audit for Crypto Custody in Korea
KODA has obtained SOC 1 Type 2 certification, verifying its custody internal controls meet institutional standards. The company has upgraded its cold-wallet infrastructure and safeguards to protect client assets.