Digital asset custody platform Koine announced on Monday it has received in-principle approval (IPA) to provide custody in relation to Virtual Assets in the Abu Dhabi Global Market (ADGM). According to Koine, the IPA was granted by the Financial Services Regulatory Authority (FSRA) of ADGM.
Koine reported that with a “growing demand” for institutional investment in virtual assets with emerging growth of institutional investors in digital securities, its regulated services will meet the needs of its customers, as well as the broader digital asset community.
“Koine’s post-trade solution was created in order to provide the most secure, easy to use Institutional custody, settlement and related cash management service for the new generation of digitised assets. Critically eliminating counter-party, credit and insolvency risks in a compliant framework with a strong governance environment. It also allows Institutional Capital the ability to invest in digital assets without any change to conventional fund mandates.”
Koine also noted that it ensures the average value of funds held in hot wallets is nil. Value at Risk is properly insured. The platform also considers itself suitable for Market Makers and Algorithmic Traders. Hugh Hughes, Chairman and CEO at Koine, added:
“The Koine model has always been one built upon the fundamental importance of good governance. This is the only way to attract institutional capital into the digital asset market, unlocking the huge, industry wide benefits that come with it. Delivering best practice and regulatory compliance for our institutional clients is something we take very seriously. Not only does this latest In-Principal Approval from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) further strengthen Koine’s global footprint, but also serves to reaffirm our belief in robust regulation.”
Founded in 2017, Koine offers segregated, institutional custody & settlement of digital assets, providing essential Financial Market Infrastructure (FMI).