Digital asset exchange Coinone is bringing in global exchange OKX as a new shareholder and moving to strengthen compliance and technological capabilities. Coinone aims to prepare for the next-generation digital finance market by combining its 12 years of security operations with OKX technology such as a matching engine, custody and wallets.

◆ Shared ground among engineering-trained CEOs leads to strategic partnership

OKX unit OKX Ventures recently acquired a 20 percent stake in Coinone, becoming a joint third-largest shareholder. The equity investment was based on common ground between the companies' CEOs over technology-driven management philosophy and compliance.

Coinone founder and CEO Cha Myung-hoon (차명훈) is a former white-hat hacker who graduated from the computer science department at Pohang University of Science and Technology. OKX CEO Star Xu (Star Xu) is also a technology specialist who earned a master's degree in physics at Renmin University of China and then worked as an engineer and chief technology officer at Yahoo Beijing and elsewhere.

Xu said in a recent interview, "Coinone, led by Cha, who comes from a white-hat hacker background, is a place where security and risk management are ingrained in the company's DNA, and it aligns with the direction of OKX, which was founded by engineers."

The two companies also share views on regulatory compliance. Cha said he would create synergies with OKX within South Korea's regulatory framework, and Xu stressed, "As Korea is a market with clear rules, we will respect Korean regulations and develop all businesses within the boundaries of the law together with Coinone, which respects Korean regulations."

◆ OKX technology proven in global markets to be applied to Coinone

OKX, which has joined Coinone as a new shareholder, is an exchange that has built trading infrastructure, custody and wallet technology in global markets. It operates platforms after securing licences in more than 27 countries including the United Arab Emirates and Singapore, and it has disclosed on-chain proof of reserves for 41 consecutive months.

Earlier this year, it also attracted a strategic investment worth $200 million from Intercontinental Exchange, the parent company of the New York Stock Exchange, expanding its touchpoints with traditional finance.

Coinone plans to upgrade its trading infrastructure by applying OKX's global technology. The key is the matching engine. Xu said at a press briefing held at Coinone's headquarters last month, "When Bitcoin fell sharply globally in October last year, 1.1 million orders per second flooded in, but the OKX system did not stop," adding, "We will apply this technological capability to Coinone as well."

◆ Adding technology to security to strengthen trading environment and custody infrastructure

Coinone's trading environment is expected to improve once cooperation with OKX technology gets into full swing. Coinone said adding OKX's matching engine, blockchain wallets and custody technology to its security operations experience can provide a stable trading environment even during periods of sharp volatility.

Coinone is also preparing for the possibility of an expansion in the corporate investor market. That is because if corporate demand for digital asset investment rises in South Korea, an exchange's capabilities in custody, internal controls and risk management could become important.

Cha said, "To prepare for the possibility that South Korea's corporate investor market opens in the future, we will work with OKX to prepare custody infrastructure technology that meets global standards." Coinone aims to prepare in advance for the future financial market.