Cryptocurrency exchange Bybit said it invested 5.5 billion won ($3.8 million) in T-Scientific, the third-largest shareholder in South Korean crypto exchange Bithumb.

Dubai-based Bybit bought almost a third of the 16 billion won of convertible debt T-Scientific issued at the end of last month. T-Scientific (057680) is listed on the South Korean stock exchange. Convertible debt is a fixed-income security that pays interest but can be converted into equity under certain conditions.

The transaction gives Bybit a potential stake in one of South Korea's largest crypto exchanges. Bithumb has 24-hour trading volume of $239 million, according to data by CoinGecko, compared with Bybit's $979 million. Bybit said it sees the investment as a means to expand into the Korean blockchain market, according to an announcement shared with CoinDesk Monday.

T-Scientific is looking to attract global investors to enhance its financial position and solidify its position in the Korean blockchain and non-fungible token (NFT) market.

Read more: Crypto Exchange Bybit Halts Derivatives Trading in Brazil After Exchange Commission Ban

UPDATE (Oct. 24, 2022 22:42 UTC): Updates to change company headquarter.