Dunamu, the operator of South Korea's largest cryptocurrency platform Upbit, will partner with the Military Bank of Vietnam (MB Bank) to launch the first domestic digital asset exchange in Vietnam.
The two parties signed a memorandum of understanding (MoU) on Tuesday at a business forum held in Seoul, attended by business leaders from both countries.
"This collaboration is particularly significant as Dunamu will export the model and technology of the Korean exchange as part of a national initiative abroad," a company representative told the Korea Herald.
MB Bank, established in 1994 as a joint-stock commercial bank and a subsidiary of the Ministry of Defense, is currently among the top 5 largest banks in Vietnam, serving 33 million customers with total assets of nearly $50 billion.
According to the agreement, Dunamu will become the key strategic partner of MB Bank, providing technology, infrastructure, as well as advising on legal compliance, investor protection, and human resource development. However, it is unclear what percentage of ownership Dunamu will hold in this new exchange.
The agreement comes as Vietnam is gradually bringing digital assets into a legal framework. Last July, the Law on Digital Technology Industry was passed, legalizing digital assets and establishing a regulated market. Vietnam plans to pilot 5 crypto exchanges.
Dunamu has not only turned Upbit into South Korea's leading exchange but also contributed to shaping the country's crypto ecosystem and legal framework, which is likely the main reason the Vietnamese government chose Dunamu as a partner. In July, Dunamu's Vice Chairman and Co-founder, Kim Hyoung-nyon, met with Prime Minister Phạm Minh Chính and committed to collaborating on digital economic development in Vietnam.
Currently, Upbit is the third largest cryptocurrency exchange in the world, handling over $1.1 trillion in transactions and managing assets worth over 15.3 trillion won ($11 billion).
"Vietnam has great potential with over 20 million people owning virtual assets, a trading volume of over $800 billion, and capital inflow into blockchain assets ranking fifth globally," said Dunamu CEO Oh Kyoung-suk. "When this growth potential combines with the Upbit model, it will be an opportunity to build not only an exchange but also a comprehensive digital financial infrastructure in Vietnam based on trust."
MB Bank Chairman, Lưu Trung Thái, stated: "MB and Upbit will collaborate as trusted partners to promote Vietnam's digital financial market."
This collaboration information caused MB's shares to rise by over 5% immediately after the announcement.