Komainu Unveils Crypto Collateral Management Solution
Posted by Colin Lambert. Last updated: April 3, 2023
Digital asset custody provider Komainu has launched Komainu Connect, a collateral management service which enables clients to leverage their digital assets in collateralisation scenarios.
The company, which is registered in Jersey and Dubai and is a joint venture between Nomura and CoinShares, says the launch comes in response to an industry requirement to reduce counterparty risk by removing the need to store collateral with trading counterparties. The solution uses tri-party agreements, which marry Komainu’s technical and legal assets with its clients’ requirement for the safety and segregation of assets held under custody.
“Komainu Connect cements our vision of introducing true trade connectivity to ramp up the utility and velocity of digital assets, while under our secure, institutional grade custody,” says Sebastian Widmann, head of strategy at Komainu. “As this industry matures, we will continue to pioneer the development of time-tested traditional finance products to match digital asset requirements.”
The firm has also launched what it terms a “scaled-up staking device” in advance of the Ethereum Shanghai hard fork on 12 April. Beyond Ethereum, initial tokens supported on Komainu’s platform are Solana, Polkadot and Tezos.
“With the addition of collateral management and enhanced staking services, we are demonstrating loud and clear that we are more than a simple repository for digital assets,” says Darren Jordan, head of sales at Komainu. “Our new collateral management services allow clients to maximise trading opportunities and reduce counterparty risk while keeping their assets secure with a regulated custodian. This is the benchmark for full-service institutional custody.”