Hana Bank buys 6.55% of Upbit owner Dunamu for $670M

Hana Bank agreed to purchase 2.28 million shares in Dunamu from Kakao Investments for about $670 million, according to a regulatory filing. The transaction would give Hana a 6.55% stake in Dunamu, the parent company of South Korea’s largest cryptocurrency exchange, Upbit. The deal is expected to close by June 15.

The all-cash purchase would make Hana the fourth-largest shareholder in Dunamu. Hana plans to fund the acquisition using roughly 2.78% of its equity capital, the filing shows. Regulators were notified of the transaction in the disclosure.

Kakao Investments will retain about 1.4 million Dunamu shares, representing roughly 4% ownership after the sale.

Dunamu operates Upbit, a major trading platform for cryptocurrencies in South Korea and one of the larger exchanges in Asia by trading volume.

Hana Financial Group described the purchase as part of its efforts to expand in digital finance. Earlier this year, the bank’s credit card unit entered a marketing agreement tied to Circle’s USDC and Crypto.com, and Hana has announced a partnership with Standard Chartered on digital asset initiatives.

Hana Financial Group reported net profit of about $2.67 billion (4 trillion won) last year. The transaction is the largest reported investment by a South Korean bank into a digital asset business to date.

South Korean banks have faced strict anti-money-laundering requirements and regulatory uncertainty around cryptocurrencies. Financial institutions around the world have increased institutional engagement with digital assets in recent months.