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Komainu, a regulated digital asset services provider and custodian backed by Laser Digital and Blockstream, has added cryptocurrency exchange Bybit to its collateral management platform, Komainu Connect. Bybit is described in the announcement as the world's second-largest cryptocurrency exchange by trading volume.
The partnership is aimed at institutional clients seeking to trade on a 24/7 basis while keeping their assets held in custody rather than on-exchange. Under the arrangement, clients will be able to hold assets with Komainu as a regulated third-party custodian while still using those assets as collateral for trading on Bybit. The model is designed to help institutions reduce counterparty risk by limiting capital held directly at the exchange.
Komainu Connect supports an off-exchange settlement process, meaning clients do not need to pre-fund positions on Bybit. Instead, collateral is managed and settled between the custodian and the exchange, with regular, automated processes intended to provide operational efficiency alongside risk management.
According to Komainu, the firm continues to build out Komainu Connect by integrating directly with exchanges, lenders and brokers and using a range of technologies to connect institutional clients with a wider network of trading counterparties. These integrations are presented as offering fast, seamless connections and a more holistic view of custody and collateral positions.
Key features highlighted for the Komainu Connect–Bybit link-up include 100% collateral mirroring, where all delegated assets in collateral wallets are mirrored on-exchange; an off-exchange settlement process that removes the need to pre-fund on-exchange; and assets held in on-chain, bankruptcy-remote segregated wallets to support transparency and legal clarity. Clients are also said to benefit from dedicated wallets on a client-by-client basis and broad asset coverage for institutional-grade digital assets.
"We're delighted to bring Bybit into the Komainu Connect ecosystem. Institutional investors increasingly demand the ability to act on market opportunities without compromising on security or compliance. Komainu Connect delivers exactly that--pairing regulated, secure custody with frictionless market access. This partnership not only strengthens our roster of trusted exchanges but also underscores our commitment to building a safer, more efficient trading environment for active investors."
— Paul Frost Smith, Co-CEO, Komainu
Paul Frost Smith, Co-CEO, Komainu
"Our top priority is to ensure trust and security for our clients. Partnering with Komainu is another step in listening to our clients' needs and strengthening our capabilities, offering secure, regulated custody alongside the flexibility and scale they expect."
— Yoyee Wang, Head Of Business To Business Unit, Bybit
Yoyee Wang, Head Of Business To Business Unit, Bybit
Bybit, founded in 2018, is a global cryptocurrency exchange serving more than 60 million users, with a focus on both centralised and Web3-driven services. The firm positions itself at the intersection of traditional finance and decentralised finance, providing trading venues and tools for participants across the digital asset ecosystem.
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