OKX, a leading cryptocurrency exchange and Web3 technology company, has collaborated with regulated digital asset custody service provider Komainu and CoinShares, a leading European alternative asset manager specializing in digital assets, to empower CoinShares to conduct 24/7 trading through the OKX platform while assets are held in segregated custody with Komainu.
The collaboration marks a significant advancement in institutional crypto trading by ensuring that collateral assets are securely held by Komainu in third-party custody in order to mitigate counterparty risks. By crafting robust frameworks, the arrangement bridges the gap between institutional traders and top-tier trading platforms while providing clarity on rights, responsibilities and redress mechanisms. By leveraging best practices for custody, settlement, and liquidity, the collaboration guarantees asset security and efficient transaction completions. All of these factors combine to foster a more trustworthy and transparent trading environment for institutional traders.
Lennix Lai, Global Chief Commercial Officer at OKX, said: "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 of CoinShares, 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, said: "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 previously partnered with Komainu in June 2023 to join the Komainu Connect platform, paving the way for the tripartite agreement with CoinShares.
OKX is a leading global crypto exchange and innovative Web3 company. Trusted by more than 50 million global users, OKX is known for being the fastest and most reliable crypto trading app for traders everywhere.
As a top partner of English Premier League champions Manchester City FC, McLaren Formula 1, Olympian Scotty James, and F1 driver Daniel Ricciardo, OKX aims to supercharge the fan experience with new engagement opportunities. OKX is also the top partner of the Tribeca Festival as part of an initiative to bring more creators into web3.
The OKX Wallet is the platform's latest offering for people looking to explore the world of NFTs and the metaverse while trading GameFi and DeFi tokens. OKX is committed to transparency and security and publishes its Proof of Reserves on a monthly basis.
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CoinShares is the European leading alternative asset manager specialising in digital assets, that delivers a broad range of financial services across investment management, trading and securities to a wide array of clients that includes corporations, financial institutions and individuals. Focusing on crypto since 2013, the firm is headquartered in Jersey, with offices in France, Sweden, Switzerland, the UK and the US. CoinShares is regulated in Jersey by the Jersey Financial Services Commission, in France by the Autorité des marchés financiers, in the US by the Financial Industry Regulatory Authority. CoinShares is publicly listed on the Nasdaq Stockholm under the ticker CS and the OTCQX under the ticker CNSRF. For more information, visit www.coinshares.com
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Created as a joint venture between Nomura, digital asset manager CoinShares and digital asset security company Ledger and headquartered in Jersey, with offices in London, Dublin, Dubai and Singapore, Komainu is a regulated digital asset custodian built by institutions for institutions. Offering multi-asset support with regulatory experience, Komainu merges traditional financial services with leading security standards for the next generation of institutional custodian.
Komainu (Jersey) Limited is regulated by the Jersey Financial Services Commission (JFSC). Komainu UK is Registered with the UK Financial Conduct Authority (FCA) FRN: 985974. Komainu MEA FZE is regulated by the Dubai Virtual Assets Regulatory Authority (VARA). Komainu Europe S.r.l has an OAM registration in Italy. For more information, visit https://www.komainu.com.
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This announcement is provided for informational purposes only. It is not intended to provide any investment, tax, or legal advice, nor should it be considered an offer to purchase, sell, hold or offer any services relating to digital assets. Digital assets, including stablecoins, involve a high degree of risk, can fluctuate greatly, and can even become worthless. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition and risk tolerance. OKX does not provide investment or asset recommendations. You are solely responsible for your investment decisions, and OKX is not responsible for any potential losses. Past performance is not indicative of future results. Please consult your legal/tax/investment professional for questions about your specific circumstances.