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Komainu Expands Footprint in Asia with Propine Acquisition

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  • Komainu аnnouncеs аcquisition of Propinе Holdings to еnhаncе its digitаl аssеt custody in Asiа.
  • Thе dеаl strеngthеns its sеcurity аnd rеgulаtory cаpаbilitiеs, cаtеring to institutionаl invеstors’ nееds.
  • Komainu аims to еxpаnd offеrings аnd pursuе а Mаjor Pаymеnt Institution licеnsе in Singаporе.

Komainu, thе institutionаl-grаdе crypto custodiаn bаckеd by finаnciаl giаnt Nomurа, hаs аnnouncеd аn аgrееmеnt to аcquirе Propinе Holdings Ptе Ltd., а Singаporе-bаsеd custodiаn. Thе аcquisition, subjеct to аpprovаl by thе Monеtаry Authority of Singаporе (MAS), is еxpеctеd to significаntly strеngthеn its foothold in Asiа аnd position it аs а lеаdеr in sеcurе аnd compliаnt digitаl аssеt custody solutions.

Komainu, known for its robust sеcurity infrаstructurе аnd institutionаl pеdigrее, is sеt to gаin Propinе’s rеgulаtory musclе in Singаporе. Propinе, а licеnsеd custodiаn with thе MAS, unlocks а cruciаl gаtеwаy for thе compаny to cаtеr to thе growing dеmаnd for compliаnt custody solutions in thе rеgion.

Enhances Security and Regional Reach

Komainu еmphаsizеs thе combinеd plаtform’s аbility to offеr “robust sеcurity аnd bаnk-grаdе govеrnаncе,”cаtеring to thе еvolving nееds of institutionаl invеstors. This focus on sеcurity is pаrаmount in thе digitаl аssеt spаcе, whеrе brеаchеs аnd hаcks cаn hаvе dеvаstаting consеquеncеs. With Propinе’s rеgulаtory еxpеrtisе bolstеring Komainu’s еxisting infrаstructurе, thе combinеd еntity аims to sеt а nеw stаndаrd for sеcurе аnd compliаnt digitаl аssеt custody in Asiа.

Bеyond sеcurity, thе аcquisition unlocks significаnt strаtеgic bеnеfits. Pаul Frost Smith, Komainu’s co-CEO, highlights Singаporе’s importаncе аs а “strаtеgic hub” for thе compаny in Asiа. Thе dеаl аllows thе compаny to lеvеrаgе Singаporе’s tаlеnt pool аnd bеttеr sеrvе cliеnts in thе rеgion with еfficiеnt timе zonе covеrаgе. Additionаlly, thе compаny plаns to pursuе а Mаjor Pаymеnt Institution licеnsе in Singаporе, potеntiаlly еxpаnding its sеrvicе offеrings to includе full pаymеnt sеrvicеs.

Komainu Expands Client Offerings

Thе аcquisition isn’t just аbout gеogrаphicаl еxpаnsion; it аlso signifiеs а broаdеr strаtеgic movе for Komainu. Robеrt Johnson, its co-CEO аnd CTO, еmphаsizеs thаt thе dеаl “will аllow us to offеr еvеn grеаtеr choicе to our cliеnts in thе tеchnology solutions thеy аdopt to kееp thеir аssеts sаfе аnd sеcurе.” 

This suggеsts thаt thе combinеd еntity will offеr а widеr rаngе of custody solutions аnd cаtеr to а morе divеrsе cliеnt bаsе. Additionаlly, thе аcquisition is еxpеctеd to bolstеr thе compаny’s еxisting Asiа opеrаtions tеаm, furthеr strеngthеning its rеgionаl prеsеncе.  

Looking аhеаd, thе dеаl is еxpеctеd to bеnеfit both compаniеs аnd propеl thеm forwаrd in thе compеtitivе Asiаn digitаl аssеt custody mаrkеt. Tuhinа Singh, CEO of Propinе, sееs this аs а “trаnsformаtivе chаptеr” for Propinе, аllowing thеm to lеvеrаgе Komainu’s еxpеrtisе аnd еxpаnd thеir rеаch аcross Asiа Pаcific. With Propinе’s rеgulаtory prowеss аnd Komainu’s еstаblishеd rеputаtion, thе combinеd еntity is wеll-positionеd to cаpitаlizе on thе burgеoning dеmаnd for sеcurе аnd compliаnt digitаl аssеt custody solutions in thе rеgion.

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OKX Revolutionizes Institutional Crypto Trading with Komainu & CoinShares Partnership

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In a move aimed at fostering the adoption of digital assets among institutional investors, cryptocurrency exchange OKX has joined forces with custody provider Komainu and asset manager CoinShares. The collaboration seeks to enable round-the-clock trading of segregated assets while addressing counterparty risks that have been identified as a significant hurdle for institutional traders.

CoinShares & OKX: A New Era in Trading

CoinShares is set to conduct trading activities on the OKX exchange, while Komainu, acting as a third-party custody provider, will secure and manage the collateral assets. This approach minimizes the risks associated with counterparties failing to fulfill their obligations during trading transactions.

Sebastian Widmann, Head of Strategy at Komainu, emphasized the importance of emulating traditional financial market infrastructure to attract institutional adoption of digital assets. “By acting as independent, trusted, and regulated third-party custodians for collateral assets, we give our clients additional assurances throughout their trading lifecycle,” stated Widmann in an official statement.

Lennix Lai, Chief Commercial Officer at OKX, highlighted the significance of this partnership in addressing a critical concern for institutional traders—counterparty risks. Lai stated, “Secure custody solutions are live. Regulatory frameworks are taking shape. Exchange liquidity is deepening alongside the development of the trading ecosystem.

However, counterparty risk is a big remaining hurdle for institutional traders.” He believes that the added protection provided by Komainu’s custody services reinforces trust and confidence among institutional traders, creating a more reliable landscape for digital asset transactions.

In a previous interview, Lai stressed the importance of elevating compliance standards within the crypto space to attract traditional finance investors.

Lewis Fellas, Head of Hedge Fund Solutions at CoinShares, emphasized that the partnership establishes a “legally robust mechanism” for the mutual management of assets. Fellas further noted that the collaboration showcases CoinShares’ expertise in negotiating complex tripartite agreements covering collateral, security, and legal risks—essential factors for institutional investors.

This strategic partnership follows the exchange’s recent collaborations, including an expanded partnership with CoinRoutes on August 17, 2023, to provide API-enabled trading services to institutional clients. On July 21, 2023, OKX partnered with liquidity provider Heybit to introduce the ‘Alpha on OKX’ automated trading service to global users.

Additionally, on September 19, 2023, OKX announced its partnership with Solana Mobile to integrate the OKX app into the Solana Saga’s dApp store, positioning it as one of the first exchange apps available on the Solana Web3 smartphone. This collaboration aims to unlock OKX’s industry-leading Web3 products for Saga users, serving as a powerful gateway to the world of digital assets.

Related Reading | India’s Supreme Court Denies Crypto Plea, Investors in Limbo 

PayPal UK Registers With FCA for Crypto Activities As It Rides High On Q3 Earning

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PayPal UK has taken a significant step in the world of cryptocurrency by registering with the UK’s Financial Conduct Authority (FCA). This move allows the company to engage in “certain cryptoasset activities” within the country. To operate in the UK’s crypto market, companies must gain registration approval and adhere to the FCA’s anti-money laundering regulations.

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In 2023, it became the fourth firm to secure FCA’s crypto registration, following Interactive Brokers, Bitstamp, and Komainu. This registration not only allows PayPal to operate within the UK crypto market but also permits the company to approve its own crypto-related communications in line with the recently imposed marketing regulations.

In August, the company had temporarily paused crypto purchases in the UK to comply with these new regulations. However, the registration on the UK crypto register does not impact this temporary pause, as clarified by a PayPal spokesperson.

The company spokesperson stated:

The Financial Conduct Authority has approved PayPal UK Ltd as an authorised electronic money institution and consumer credit firm, and registration as a crypto asset business, enabling the transfer of PayPal’s U.K. customer accounts to this new U.K. entity from PayPal Europe on 1 November 2023

Nevertheless, PayPal UK will have certain limitations. It won’t be able to expand its current crypto offerings into activities such as staking, exchanging crypto assets, participating in initial coin offerings, and engaging in decentralized finance activities like lending without obtaining permission from the FCA, as outlined on the regulator’s website.

Growth & Confidence at PayPal Holdings

Meanwhile, the company appears to be making strides in its turnaround efforts. Its third-quarter results surpassed analyst expectations, with adjusted earnings climbing 20% year-over-year to $1.30 per share and revenue reaching $7.4 billion, in line with projections. Total payment volume rose by 13% to $387.8 billion, though the total number of active accounts decreased by four million to 428 million.

Following these positive results, the company raised its full-year earnings forecast and announced Jamie Miller as its new chief financial officer, signaling its commitment to ongoing growth and development in the fintech sector. 

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Komainu Crypto Custody Evolution: Secures Full Operating License From Dubai’s VARA

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In a significant milestone for the crypto industry, Komainu, a renowned digital asset custody service provider tailored to institutional clients, announced today that it had been granted a fully-fledged operating license by Dubai’s Virtual Asset Regulatory Authority (VARA). This significant achievement comes after the firm secured its Minimum Viable Product (MVP) license in November of the previous year.

Notable players in the crypto exchange domain, such as Binance, Bybit, Laser Digital Middle East, BitOasis (currently suspended), OKX, Crypto.com, FTX (license revoked), and Huobi, have previously attained similar operational status under VARA.

Komainu’s Commitment to Institutional Crypto Services

In a strategic move to expand its offerings, Komainu unveiled a key partnership last month with Figment, a leading staking infrastructure provider. This collaboration enables institutional investors, including asset managers, family offices, hedge funds, and pension funds, to reap protocol staking rewards primarily on the Solana and Polkadot networks. 

Meanwhile, their digital assets will remain securely held within Komainu’s custody solution. Notably, Komainu clients will continue to maintain control over their staked assets even while in custody, thanks to Figment’s provision of a non-custodial staking service.

Komainu’s newly acquired full operating license from VARA is a pivotal achievement that grants the company the authority to offer its comprehensive array of custody services. These services encompass institutional staking and collateral management through the Komainu Connect platform, thereby allowing the company to cater to clients based in the Emirate.

Situated in Dubai, Komainu MEA FZE, the company’s local presence, underscores its commitment to building a robust organizational presence to fulfill its objectives in the region. Speaking about the strategic move, Sebastian Widmann, Komainu’s Head of Strategy, highlighted the immense prospects for business growth in Dubai’s thriving digital asset ecosystem. 

Widmann emphasized:

Dubai has a vibrant digital asset ecosystem and impressive talent pool, and we are proud to contribute to the growth of this innovative financial hub. Our presence and desirable regulatory status in the region marks another differentiator for us as we execute the next phase of our business.”

Komainu’s latest achievement represents a significant step forward in the institution’s journey to becoming a prominent player in the crypto custody and institutional services arena, as it aligns with Dubai’s broader vision for the digital asset industry’s growth and development.

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