A U.S. securities company has been purchased by a South Korean insurer.
Hanwha Life, a leading South Korean life insurance company, has made a strategic move into the North American capital markets with the acquisition of a 75% stake in Velocity Clearing, LLC [1][2][4]. This marks the first time a South Korean insurance company owns a US securities firm, allowing Hanwha Life to operate directly within the US financial sector.
Based in New York, Velocity Clearing specializes in post-trade services, including clearing and settlement, and manages about $1.2 billion in assets [1]. Over the last three years, the firm has shown a compound annual growth rate (CAGR) of 25% in revenue, indicating strong operational performance [2].
The acquisition positions Hanwha Life to tap into the expanding US post-trade market, valued with a 12–15% CAGR, and supports the creation of a cross-border financial ecosystem [3]. Hanwha Life aims to leverage Velocity's technology infrastructure and growth trajectory as a platform to build synergies with its US asset management affiliate, Hanwha Asset Management (USA), and its AI Center in San Francisco [1][3].
Lee Millstein, Chairman of Global Real Estate for Cerberus, expressed pride in supporting Velocity Clearing through a period of growth and expressed confidence that Hanwha Life is well-positioned to build on that momentum in Velocity Clearing's next chapter [1]. Brian Schaeffer, President of Velocity Clearing, stated that the partnership with Hanwha Life will enable Velocity Clearing to accelerate its product and geographic expansion [1].
The net income of Velocity Clearing is increasing steadily, with continued profitability expected after the acquisition [1]. As of the end of 2024, Velocity Clearing held approximately USD 1.2 billion in total assets [1]. The majority of the stake acquired was previously owned by an affiliate of Cerberus Capital Management, L.P. [1].
The collaboration aims to combine financial expertise with advanced AI capabilities to strengthen Hanwha Life's competitive edge in the U.S. market [2]. The firm's representative stated that the transaction represents a significant step for Korean finance to establish a presence in the U.S. capital markets [2].
In summary, the acquisition represents a strategic shift for Hanwha Life to diversify its business into North American capital markets, enhance profitability through direct financial sector participation, leverage Velocity Clearing’s growth, technology, and regulatory footprint, integrate fintech and AI capabilities via Hanwha’s US AI Center and asset management affiliate, and establish a platform for a global, cross-border financial ecosystem [1][2][3][4].
References: [1] Hanwha Life Acquires Majority Stake in Velocity Clearing, Yonhap News Agency, 30 July 2025. [2] Hanwha Life Enters North American Capital Markets with Velocity Clearing Acquisition, Business Korea, 30 July 2025. [3] Hanwha Life Expands into US Financial Sector with Velocity Clearing Acquisition, Korea JoongAng Daily, 31 July 2025. [4] Hanwha Life Buys Stake in US Clearing Firm, The Korea Times, 30 July 2025.
Hanwha Life has ventured into the promising North American capital markets by acquiring a significant stake in Velocity Clearing, a New York-based firm specializing in post-trade services, thereby enabling direct participation in the US financial sector. This strategic move allows Hanwha Life to capitalize on Velocity Clearing's growth, technology, and regulatory footprint, thereby strengthening its competitive edge in US investing and business.
