Ethereum institution enters Korean market for the first time, focusing on Asian expansion

Ethereum Institutional co-founder Matthew Dawson visited South Korea for the first time this week. The organization, established in July, aims to support institutional adoption of Ethereum and is strengthening its cooperation with Asian financial markets.

During this visit, Dawson met with major domestic banks, securities firms, asset management companies, exchanges, and infrastructure companies, with a clear objective to build relationships and demonstrate that Ethereum is designed to meet institutional needs.

The timing coincides with a shift in Seoul’s regulatory environment. On September 4, the Korean Financial Services Commission announced its policy direction for tokenized securities, outlining specific plans to use blockchain as financial market infrastructure. Hyperledger Besu, Avalanche, Klaytn, and Polygon were designated as priority integration candidates for Korea Securities Depository, while public blockchains such as Ethereum were not included.

Nevertheless, Dawson remains confident in South Korea’s ability to leverage blockchain infrastructure, highlighting that the country's large financial institutions, fintech industry, and strong developer community are key advantages for linking domestic finance to global innovation.

From Private Chains to Public Infrastructure: Ethereum’s Introduction to South Korea’s Financial Sector

Dawson believes that the exclusion of public blockchains is unlikely to be permanent. He pointed out that while private networks are a natural starting point, they inherently lack in liquidity, interoperability with other assets, and overall utility, predicting that institutions will eventually migrate to public blockchains following a natural upgrade path. JPMorgan is a prime example: although the bank operates its own blockchain platform, Kinexys, it also issued the US dollar–denominated deposit token JPM Coin on Ethereum Layer 2 network Base.

Ethereum’s appeal to institutional investors lies in three core pillars: security, liquidity, and—most importantly—neutrality. Dawson characterized Ethereum as the most neutral blockchain to date, emphasizing that Korean institutions and regulators need not worry that the underlying infrastructure is beholden to any single foreign entity. He acknowledged that Ethereum is neither the fastest nor the lowest-cost network, but believes its emphasis on security and robustness is an appropriate trade-off for institutional-grade assets such as money market funds, stablecoins, bonds, and equities.

For Korean financial institutions, the main barriers to embracing blockchain technology are technical integration with existing systems and regulatory compliance. Dawson noted that banks must align new blockchain infrastructure with established internal processes, and cooperation with regulators is vital. Although there were no meetings scheduled with the Financial Services Commission or Financial Supervisory Service during this visit, he said he hopes to introduce Ethereum to Korean regulators in the future.

Regarding the ongoing debate over who should be allowed to issue won-denominated stablecoins, Dawson suggested the market should accommodate both banks and non-bank issuers. He cited Europe as an example, noting that in Europe, both licensed electronic money institutions and banks can issue such tokens.