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November 15, 2023 - Cryptocurrency exchange OKX has joined forces with regulated digital asset custody provider Komainu and CoinShares, a prominent European alternative asset manager specialising in digital assets. This collaboration facilitates CoinShares to engage in 24/7 trading on the OKX platform while safeguarding assets in segregated custody with Komainu.
This strategic partnership represents a significant milestone in institutional digital asset trading, offering enhanced security through the third-party digital custody services provided by Komainu. The objective is to mitigate counterparty risks and establish robust frameworks that bridge the gap between institutional traders and top-tier trading platforms.
By leveraging best practices for custody, settlement, and liquidity, this collaboration ensures asset security and facilitates efficient transaction completions. Collectively, these efforts contribute to fostering a trustworthy and transparent trading environment tailored to meet the needs of institutional traders.
Lennix Lai, Global Chief Commercial Officer at OKX, commented on the collaboration with CoinShares and Komainu, "The next big influx of institutional capital into the crypto markets will come via innovative solutions like this one, which allows traders to access the liquidity of OKX's leading markets while being assured that their assets are kept with Komainu, a regulated custodian. We've listened to our institutional customers and worked with Komainu and CoinShares, who are leaders in their respective sectors, to find a mutually beneficial solution that mitigates counterparty risk while maximizing upside for traders.."
Lewis Fellas, Head of Hedge Fund Solutions at CoinShares, also said, "For institutional investors, counterparty risk is the Achilles heel of crypto when trading on exchange. Without fail it’s the topic most discussed in investor meetings and a major challenge to be overcome as we prepare for true institutional participation in crypto markets. Working with OKX and Komainu for the last six months we’ve devised a robust legal structure, processes and mechanisms to mitigate counterparty risk whilst facilitating high volume trading. The resulting collaboration between ourselves, OKX and Komainu showcases our approach to risk management and amplifies the value we offer to our clients.."
Nicolas Bertrand, CEO at Komainu, stated, "This is a significant step forward in our mission to provide digital asset custody solutions to our customers. We are very pleased to contribute our expertise in institutional-grade custody services to this tripartite agreement, which advances our vision of achieving more trusted crypto markets in collaboration with OKX and CoinShares."
OKX had previously partnered with Komainu in June 2023 to integrate with the Komainu Connect platform, paving the way for this tripartite agreement with CoinShares.
