Hanwha Life Insurance Co. plans to acquire a 75% stake in the parent company of Velocity Clearing. This move provides the South Korean life insurer with a foothold in the U.S. financial services market while offering Velocity opportunities for growth in Asia.
Velocity Clearing’s management team will retain a minority stake. Both companies announced that Hanwha Life is committed to keeping Velocity Clearing’s current staff and fostering collaboration.
The deal remains subject to closing conditions, including regulatory approvals from authorities in the U.S. and South Korea.
Efforts to obtain comments from Hanwha Life and Velocity Clearing were unsuccessful.
Hanwha Life has been actively expanding into international markets, including Vietnam and Indonesia, with the U.S. as its latest entry point.
Velocity Clearing operates as a technology-driven, self-clearing broker-dealer. It offers execution services, clearing, custody, stock locate services, securities lending, and competitive financing.
Hanwha Life CEO Seung Joo Yeo highlighted the strategic importance of the acquisition.
As we look to expand into the U.S. market, we wanted to partner with a firm that has a strong footprint in financial services, and that is Velocity Clearing
Hanwha Life CEO Seung Joo Yeo
Yeo noted that the opportunity for cross-border, diversified growth in the U.S. market holds significant value for the company.
Velocity Clearing CEO Michael Logan described the partnership as a proactive move reflecting the market’s demand for the company’s services. “For Velocity Clearing, forming this partnership was made from a position of strength that speaks to the broad marketplace appeal of our offerings,” Logan said.
He added that Hanwha Life’s support will help accelerate growth, especially in Asia. Hanwha Life’s total assets amount to $114 bn.
The acquisition will enable the New York-based brokerage and financial technology firm to expand its footprint in the Asian market.
