Hanwha Investment & Securities, a prominent South Korean financial institution, has invested approximately 18 billion won (around $13 million) in Kresus Labs, a U.S.-based firm specializing in blockchain infrastructure. This funding aims to enhance Kresus’ digital wallet technology and facilitate the tokenization of real-world assets (RWA).
The investment follows a memorandum of understanding signed in December during Abu Dhabi Finance Week, marking a strategic move to expand Kresus’ enterprise capabilities. The firm focuses on developing digital asset tools that cater to both individual users and institutional clients, including innovative ‘seedless’ wallet recovery technology and security systems based on multi-party computation (MPC).
Seedless recovery allows users to regain access to their digital assets without relying on the conventional method of using a series of 12 to 24 random words, which can often pose challenges for less tech-savvy users. Kresus also provides wallet infrastructure and tokenization platforms that align with institutional compliance and operational standards.
Hanwha intends to leverage Kresus’ technology to enhance its digital asset services aimed at clients and to create tokenized versions of traditional financial products. For established financial institutions, addressing wallet security and ensuring compliance in tokenization are critical hurdles for deeper involvement in blockchain markets.
This investment highlights a trend where capital continues to flow into infrastructure providers, even amid volatility in the broader cryptocurrency markets. Rather than investing in speculative tokens, institutions are increasingly focusing on custody solutions, security measures, and tokenization frameworks that can integrate with existing financial systems.
Hanwha Investment & Securities has invested $13 million in Kresus Labs to enhance digital wallet technology and support real-world asset tokenization. This move reflects a growing trend among institutions to prioritize infrastructure over speculative investments in the volatile cryptocurrency market.