Bitfinex to Join Komainu Connect

Digital asset custody service provider Komainu has signed a Memorandum of Understanding to explore an integration with the digital asset trading platform Bitfinex into its collateral management platform, Komainu Connect.

Any link up will be underpinned by Ledger Enterprise’s off-exchange trading and settlement technology, Ledger Tradelink, which allows customers to trade through the Bitfinex platform, while assets remain in segregated custody with Komainu. Bitfinex, is the first exchange to join Ledger Tradelink.

Komainu Connect was launched in 2018 to address the industry need to reduce client counterparty risk associated with storing collateral with trading counterparties. The firm says by enabling assets to remain safely stored with a regulated custodian, institutional investors will be able to capitalise on trading opportunities through Bitfinex while maintaining asset security and regulatory compliance.

“Our collaboration with Komainu Connect reflects our commitment to expanding secure trading options for our customers and provides an additional layer of security for institutional investors by allowing them to leverage Komainu’s regulated custody solution while still accessing Bitfinex’s robust trading environment,” says Paolo Ardoino, CTO of Bitfinex.

Sebastien Badault, executive VP of enterprise revenue at Ledger, adds, “Our collaboration with Komainu and Bitfinex heralds a new era for capital markets through the launch of a new open protocol standard for off-exchange trading. We’ve long believed that establishing a unified standard for off-exchange collateral pledging and settlement among custodians, exchanges, and liquidity providers is crucial for scaling the institutional digital asset market.”