OKX adopts custody service “Komainu” invested by Nomura HD | CoinDesk JAPAN | Coin Desk Japan

OKX, the world’s second largest crypto asset (virtual currency) exchange by trading volume, uses the custody service “Komainu”, allowing institutional investors to place crypto assets as a custodian backed by Nomura Holdings. , while allowing the funds to be traded on exchanges.

The partnership demonstrates how a vertically integrated cryptocurrency exchange can mimic traditional finance and separate operations using third-party custodians to avoid going bankrupt like FTX. is.

OKX has launched Komainu Connect, a licensed payment and custody system for institutional investors that combines cold storage, multi-party computing (MPC) and hardware security modules (HSM) to provide 24/7 trading. Became the first client to use it.

“Funds deposited in Komainu’s custody wallet will be transferred to Komainu’s collateral wallet and linked to an OKX account,” OKX chief commercial officer Lennix Lai said in an email. told CoinDesk. “OKX accounts reflect balances and enable active trading on OKX’s 700+ spot and derivatives markets.”

Komainu Connect collateral wallets visualized by OKX are linked to institutional-level tri-party account modification agreements, explained Sebastian Widmann, Head of Strategy at Komainu.

“There is a legal agreement between custodian Komainu, liquidity provider OKX, and the client,” Widman said in an interview. “This will allow Komainu to take over the settlement requirements and allow Komainu clients to trade directly on the exchange.”

OKX did not provide details of the amount of assets under custody that will be transferred to Komainu, but Lai said it was a “substantial amount” and will increase as the two companies strengthen their institutional product offerings. He said it is expected to increase.

“Our position is that the more solutions we offer our users, the better. We offer solutions for on-exchange, off-exchange and third-party balance mirror custody,” Lai said. ing.

Komainu was launched in 2020 as a joint venture between Nomura Holdings, digital asset management company CoinShares, and hardware wallet maker Ledger. It is licensed in Jersey, UK and Dubai, and has offices in London, Dublin and Singapore.

｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Image: Shutterstock
｜Original: OKX Chooses Nomura-Backed Crypto Storage Firm Komainu as Custodian