What to know:
- Jito Foundation and KODA signed a deal targeting institutional staking for JitoSOL in South Korea.
- JitoSOL price rises as institutional demand grows for regulated staking and custody solutions.
- A potential JitoSOL ETF with Hanwha Asset Management awaits South Korean regulatory approval.
The Jito KODA partnership was announced on Monday through a memorandum of understanding between Jito Foundation and KODA. The agreement focuses on crypto custody and institutional staking support for JitoSOL as South Korea prepares stricter digital asset regulations.
According to the Jito Foundation, the Jito KODA partnership will onboard institutional investors into compliant staking systems. The move comes as South Korea’s Financial Services Commission advances its regulatory framework for digital assets.
Growing Institutional Demand
The Jito KODA partnership represents growing demand for institutional staking products from financial organizations and corporate treasuries. Marc Liew, Jito Foundation’s APAC head, stated there has been a high level of interest from institutions that seek yield-generating crypto-exposure.
Liew stated that institutions are creating “next generation” wealth products that utilize staking-based yields. JitoSOL allows users to stake Solana while retaining liquidity in DeFi applications.
Price data for JitoSOL from TradingView indicates that the token is currently trading at $106.87, representing a 2.86% increase over the last day.
Market capitalization stands at approximately $938 million, while its 24-hour trading volume reached $6.27 million. JitoSOL’s recent price increases follow the announcement of the Jito-KODA partnership, indicating growing institutional interest.
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KODA Provides Regulatory Compliant Custodial Solutions
The Jito-KODA partnership uses institutional-grade custodial solutions for secure participation from the institution. KODA offers cold storage, multi-party computation (MPC)-based key management, and up to $20 million in digital asset insurance coverage.
Through this platform, users may create JitoSOL tokens directly from their Solana holdings within KODA’s secure user interface. KODA is supported by KB Kookmin Bank and is registered as a virtual asset service provider (VASP). It is certified under the International Standard on assurance engagements (ISAE).
As such, the solution enables regulatory-compliant staking from institutions while facilitating seamless staking processes.
Regulatory Environment Contributes To Development
The Jito-KODA partnership appears at a time when regulators in South Korea have increased oversight across the entire digital assets market. Recently, authorities in South Korea implemented stricter licensing requirements for exchanges.
It also expanded shareholder monitoring requirements for all entities involved in cryptocurrency trading. A Bithumb payout error involving incorrect Bitcoin distributions exposed weaknesses in current systems.
This created an immediate need for regulatory reform. The Financial Services Commission now requires tighter reconciliations between the ledger entries maintained by exchanges and balance records on-chain.
Additionally, regulatory bodies have proposed the classification of stablecoins and maximum ownership limits on local exchanges.
ETF development and Global Expansion Plans
The Jito-KODA partnership is expected to facilitate further global expansion, including talks with Hanhwa Asset Management regarding the creation of an ETF using JitoSOL. However, this potential ETF remains contingent upon approval from regulatory agencies within South Korea’s evolving regulatory landscape.
JitoSOL is currently available to institutional investors in Europe through an exchange-traded product (ETP) offered by 21Shares. Additionally, custodian companies such as BitGo and Hex trust offer direct staking capabilities from their custody accounts.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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