DSRV Labs (DSRV) may be relatively unknown to the general public, but it is already a familiar name among blockchain and digital asset professionals. Though not a large company, DSRV entered the validator business in 2019 and has since grown into one of the most influential node operators.

Having established its position in the blockchain ecosystem, DSRV is now venturing into regulated financial services. Its first step is custody. Last year, the company obtained a Virtual Asset Service Provider (VASP) license from Korea’s financial authorities, with plans to apply its validator expertise to digital asset custody. Building on this foundation, DSRV is also envisioning future projects such as stock market listing and stablecoin-based payment infrastructure.

Strength in Direct Node Operations: One-Stop Custody and Staking

In September last year, only a year after filing its application, DSRV was granted official approval from regulators. In Korea, custody providers are required to obtain a VASP license. This approval allowed DSRV to expand its business scope from validator services to digital asset custody.

The validator and custody businesses are closely connected, as custody providers must be able to directly handle blockchain networks. DSRV currently participates as a validator in more than 70 blockchains. It also possesses core custody technologies such as key management systems (KMS), multi-signature, multi-party computation (MPC), and distributed key generation (DKG).

The advantage of owning these technologies is independence. With its in-house expertise, DSRV can securely store assets and quickly respond to requests for new types of digital asset custody without relying on external providers.

Leveraging this expertise, DSRV also plans to launch staking services. The company has already completed a legal review through external counsel. With custody, clients’ digital assets will not only be safely stored but can also generate staking rewards directly from blockchain networks. Unlike many competitors, DSRV operates its own validator nodes, enabling it to stake assets directly without outsourcing or transferring funds externally.

In the near future, DSRV intends to launch a dashboard platform allowing clients to check their digital asset holdings in real-time and receive accounting support. Similar services are already offered by incumbents such as KODA and KDAC, but as a later entrant, DSRV aims to differentiate itself by embedding its validator know-how. In February, the company acquired ISMS (Information Security Management System) certification to strengthen market trust and is also preparing for ISO 27001 certification.

A DSRV spokesperson commented, “We have reinforced our internal control systems in compliance with Korea’s Virtual Asset User Protection Act and are preparing to acquire international ISO 27001 certification for even safer custody.”

More Recognized Abroad — Now Looking to Build a Domestic Presence

DSRV recorded KRW 10 billion (approx. $7.5 million) in revenue and KRW 3 billion in operating profit last year, its first-ever surplus since founding. Most of its revenue still comes from validator services, with assets under management (AUM) reaching KRW 3 trillion (approx. $2.3 billion).

Major global projects such as Solana, Aptos, and Sui turned to DSRV from their early stages, underscoring the importance of securing reliable validators. Because many blockchain projects are based overseas, a significant portion of DSRV’s revenue comes from foreign clients.

The company now plans to grow its domestic revenue through its custody business. Since it obtained its VASP license only in September, 2023 left little time to fully expand custody services. DSRV expects growth this year as listed companies and institutional investors gain regulatory approval to invest in digital assets starting from Q3 2023.

While its short-term goal is to scale its custody business, its mid- to long-term ambitions include building a digital asset payment system and pursuing a stock market listing. DSRV is already working on blockchain-based local currency and stablecoin payment infrastructure. To advance these initiatives, however, regulatory reform is essential.

In February, DSRV became the inaugural chair of the Fintech Industry Association’s Stablecoin Council. The company aims to serve as a bridge between regulators, financial institutions, and private enterprises to accelerate the adoption of stablecoins in Korea.

Additionally, DSRV recently appointed Daishin Securities as the lead underwriter for its planned KOSDAQ listing in the first half of next year. According to management, reaching the scale of a listed company is essential to successfully expand into the payments business.

A DSRV representative explained, “We have built our payment network on Optimism and Avalanche, and are also operating an Ethereum Layer 2 mainnet specialized for simplified payments.” He added, “We have already introduced an in-house café payment system for a mid-sized Korean company and are discussing ways to expand usage further.”