Komainu, a trusted custody service provider operating under regulatory oversight, has recently unveiled a strategic partnership with Copper, a leading player in institutional digital asset solutions. This collaborative effort opens up exciting possibilities for Komainu’s institutional clients, presenting them with an innovative avenue for off-exchange settlements through Copper’s ClearLoop network.
The backdrop for this partnership is the maturing landscape of digital assets, where institutions are increasingly looking to diversify counterparty risk while seeking the benefits of swift settlement processes. Both Komainu and Copper share a common commitment to maintaining the highest standards of digital asset security, and this alignment marks a significant step forward in shaping the future of financial market infrastructure.
Komainu, a venture established through the collaboration of Nomura, Ledger, and CoinShares, is gaining prominence in the digital asset arena with its integration of Copper’s ClearLoop network. This partnership promises to provide Komainu’s institutional clients with a unique advantage in off-exchange settlements, combining Komainu’s regulated on-chain custody with ClearLoop’s advanced off-exchange settlement capabilities.
In an environment where institutional adoption of digital assets is on the rise, the focus on custody and counterparty risk management has become paramount. The collapse of the crypto exchange FTX in the past served as a stark reminder of the critical need for robust custody solutions.
ClearLoop offers a game-changing solution by holding assets until just prior to trade execution, effectively reducing counterparty risk by seamlessly connecting various exchanges within a unified trading network. This approach eliminates the necessity of transferring assets to an exchange-based wallet, streamlining and fortifying the institutional trading process.
The CEOs of both companies, Nicolas Bertrand of Komainu and Dmitry Tokarev of Copper, have expressed their enthusiasm for this partnership. Bertrand emphasized the importance of counterparty risk diversification and the partnership’s capacity to offer clients the best of both worlds. He underlined how Copper’s proven processes and connectivity, in tandem with the visibility and security provided by Komainu’s on-chain, segregated, and regulated custody platform, will elevate industry standards.
Komainu recently achieved a significant milestone when it received regulatory approval from the UK’s Financial Conduct Authority (FCA) to operate as a custodian wallet provider. This accomplishment aligns with the regulatory framework designed to combat money laundering, terrorist financing, and fund transfers. Komainu’s unwavering commitment to regulatory compliance and security underscores the increasing professionalism within the digital asset sector.
As institutions continue to embrace digital assets, the partnership between Komainu and Copper ushers in a new era of secure, efficient, and trustworthy financial markets. Additionally, with the regulatory green light from the FCA, Komainu reiterates its dedication to adhering to the highest industry standards of security and compliance.