Three Samsung subsidiaries agreed to acquire a combined four percent stake in Donamo, operator of Upbit, Korea’s largest cryptocurrency exchange, for $408 million, capping a May rush by Korean financial giants.
We analyze the deal, the broader buying spree, and what it means for Korea’s rapidly transforming digital asset market.
What does the Samsung and Donamo deal include?
Samsung Securities, Samsung SDS and Samsung Card said on May 28 that they will jointly purchase 1.39 million Dunamu shares from Kakao Investment. The total amount amounts to 612.8 billion won, or approximately $408 million.
according to ReportsThe division is clear across the three units. Samsung Securities takes a 2% stakeWhile Samsung SDS and Samsung Card each get 1%.
The importance of Donamo extends far beyond Korea’s borders. Founded in 2012 and led by Chairman Song Chi-hyung, it operates an exchange that handled about two-thirds of South Korea’s spot cryptocurrency trading volume last year.
This measure Upbit ranks among the busiest places in the world in terms of sales volume. Any change in Dunamu’s ownership structure therefore impacts global market makers, custodians and token issuers active across the region.
Donamo said it will work with Samsung subsidiaries on blockchain-based financial investment products, payment infrastructure, and expansion of artificial intelligence using blockchain technology, according to a company statement.
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Why are Korean financial giants racing to Donamo?
Historically, the cryptocurrency market in South Korea has been based on individual investors. Banks, brokerages and conglomerates have backed off largely due to regulatory caution and the absence of a clear framework for digital assets.
This situation is now changing rapidly. On May 15, the banking unit of Hana Financial Group agreed to purchase 2.28 million shares of Donamo stock for 1.003 trillion won, or about US$669 million. Tenure insurance 6.55%.
The move made Hanna the first Korean financial holding company to directly acquire shares on a cryptocurrency exchange. Five days later, they were happy to invest in securities Increased its stake to 9.84%It spent 597.8 billion won, or about 399 million dollars.
Combined, the three deals will transfer approximately 14% of Donamo to existing Korean groups in less than two weeks. The amount disclosed exceeds 2.2 trillion won across the entire wave of activity.
Each buyer cited their positioning Stablecoins pegged to the wonand tokenized securities and cross-chain settlement before the Digital Assets Statute. Hana is planning stablecoins pegged to the South Korean won and blockchain remittances Using Dunamu’s GIWA chain,Layer 2 Ethereum network.
Meanwhile, Kakao Investment is exiting as Dunamu prepares for an all-stock merger with Naver Financial worth 15 trillion won. The amendment reduces the share of cocoa from 10.58% at the end of last year to about 0.13%.
This removes a shareholder who was previously seen as a potential obstacle to the merger. The two companies postponed the shareholder vote to August 18 and the closing date to September 30, citing a longer Fair Trading Commission review.
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