OKX, a leading cryptocurrency exchange and global on-chain technology company, and Komainu, a leading regulated digital asset service provider and custodian, built by institutions for institutions, announced an expansion of their partnership to offer institutional clients an enhanced off-exchange custody solution, further boosting the security of their digital assets.

In June of 2023, OKX joined Komainu’s collateral management platform, Komainu Connect, to offer a secure off-exchange settlement solution for its institutional clients. This solution allows institutional clients to trade segregated assets under custody through the OKX platform 24/7. By providing clients with the ability to store assets with a regulated third-party custodian, whilst trading on exchange, this solution allows clients to better manage their counterparty risk.

The latest enhancements to OKX and Komainu’s off-exchange solution now include the following improvements for institutional clients:

• Greater scale and support: Supporting both spot and derivatives transactions on OKX
• Automated settlement: Client profit and losses are settled automatically between OKX and the client’s collateral wallet in Komainu, enhancing capital efficiency and further reducing counterparty risk
• 24/7 collateral adjustment: Ability to adjust the amount of collateral delegated to OKX from the client’s regulated collateral wallet, held in Komainu’s custody. Delegation is available 24/7 from the Komainu portal
• Detailed transaction and settlement history: Clients can access this information through the Komainu portal
• Holistic view of custody and collateral wallets: Providing improved audit capabilities by consolidating relevant information in one place

With the continued influx of institutional traders in the crypto space, OKX and Komainu’s off-exchange solution has attracted a range of digital asset firms seeking an innovative and secure way to trade OKX products. Available 24/7, this solution offers clients optimized capital use through real-time collateral mirroring and intraday settlement modes, enhancing liquidity and trading efficiency.

On November 15, 2023, OKX announced its collaboration with Komainu, which included CoinShares, a leading European alternative asset manager specializing in digital assets, as the first client, empowering CoinShares to conduct 24/7 trading through the OKX platform while assets are held in segregated custody with Komainu.

OKX Global Chief Commercial Officer Lennix Lai said: “Institutional clients require the highest levels of security and efficiency, and our custody partnerships deliver this for a range of client needs. Our expanded partnership with Komainu combines their regulated custodial services with our robust trading infrastructure and deep liquidity to offer greater scale and support for off-exchange custody clients who execute spot and derivatives transactions on our platform.”

Paul Frost-Smith, Co-CEO at Komainu said: “We are excited to expand our reach, offering our enhanced OKX off-exchange solution to more clients. This collaboration is testament to our mission of providing secure and compliant digital asset servicing solutions.”

Robert Johnson, Co-CEO at Komainu, added: “By leveraging our industry-leading custodial offering and OKX’s robust trading infrastructure, we are building a high-quality network for our clients, to deliver a frictionless, segregated and secure experience.”

Source: Komainu