Komainu launches collateral management solution
04 April 2023 US
Image: ipopba/stock.adobe.com
Komainu, a regulated digital asset custody service provider, has launched its new collateral management service, Komainu Connect.
Now live, the offering aims to enable leverage of clients’ digital assets in collateralisation scenarios while they remain in secure, regulated custody, segregated and verifiable on blockchain.
According to Komainu, the service comes as a response to an industry requirement to reduce counterparty risk by removing the need to store collateral with trading counterparties.
In mitigating counterparty risks, Komainu has designed Komainu Connect to facilitate 24/7 trading with assets held in custody, allowing clients to maximise investment opportunities while keeping their assets separate and secure.
This is achieved through triparty agreements, the firm says, which marry Komainu’s technical and legal acumen with their clients’ requirement for the safety and segregation of assets held under custody.
Komainu was created as a joint venture between Nomura, digital asset manager CoinShares and digital asset security company Ledger.
Sebastian Widmann, head of strategy at Komainu, says: “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.
“As this industry matures, we will continue to pioneer the development of time-tested traditional finance products to match digital asset requirements.”
Darren Jordan, head of sales at Komainu, adds: “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.
“Our new collateral management services allow clients to maximise trading opportunities, reduce counterparty risk, while keeping their assets secure with a regulated custodian. This is the benchmark for full-service institutional custody.”
Now live, the offering aims to enable leverage of clients’ digital assets in collateralisation scenarios while they remain in secure, regulated custody, segregated and verifiable on blockchain.
According to Komainu, the service comes as a response to an industry requirement to reduce counterparty risk by removing the need to store collateral with trading counterparties.
In mitigating counterparty risks, Komainu has designed Komainu Connect to facilitate 24/7 trading with assets held in custody, allowing clients to maximise investment opportunities while keeping their assets separate and secure.
This is achieved through triparty agreements, the firm says, which marry Komainu’s technical and legal acumen with their clients’ requirement for the safety and segregation of assets held under custody.
Komainu was created as a joint venture between Nomura, digital asset manager CoinShares and digital asset security company Ledger.
Sebastian Widmann, head of strategy at Komainu, says: “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.
“As this industry matures, we will continue to pioneer the development of time-tested traditional finance products to match digital asset requirements.”
Darren Jordan, head of sales at Komainu, adds: “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.
“Our new collateral management services allow clients to maximise trading opportunities, reduce counterparty risk, while keeping their assets secure with a regulated custodian. This is the benchmark for full-service institutional custody.”
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