Bitfinex, a digital asset trading platform, has announced a collaboration to explore a strategic integration with Komainu Connect, a regulated digital asset custodian.
The integration is expected to “allow institutions and sophisticated investors to leverage Bitfinex’s deep liquidity and advanced trading features while maintaining the security of their assets in a separate, regulated custody environment.”
This collaboration is enabled by Ledger Enterprise’s off-exchange trading and settlement technology, Ledger Tradelink, which “enables institutional customers to trade through the Bitfinex platform.”
By working with Bitfinex, the Komainu Connect integration is “expected to allow institutions to trade on one of the world’s most liquid markets for crypto assets, while keeping their assets segregated with a regulated custodian.”
One of the key benefits institutions will gain “from this integration is the ability to enjoy uninterrupted trading on Bitfinex without frequent on-chain asset transfers, as well as the security offered by keeping assets in custody with Komainu.”
The integration would be the latest remote custodian solution “offered by Bitfinex, and follows similar arrangements it has with other custodian partners, which have both proved popular with institutional customers.”
Traders with assets on Komainu Connect and a verified account on Bitfinex will be able to allocate “a portion of their custody-held assets for trading, initiating a lock at Komainu.”
Simultaneously, Komainu Connect will “notify Bitfinex through an API connection.”
Upon approval, Bitfinex will grant the trader “a balance equivalent to the locked amount, enabling seamless trading with the designated assets.”
Paolo Ardoino, CTO of Bitfinex said:
“Our collaboration with Komainu Connect reflects our commitment to expanding secure trading options for our customers and provides an additional layer of security for institutional investors by allowing them to leverage Komainu’s regulated custody solution while still accessing Bitfinex’s robust trading environment.”
Paul Frost-Smith, Co-CEO at Komainu, said:
“We are thrilled to welcome Bitfinex to our Komainu Connect platform. This collaboration expands our ecosystem of trusted exchanges, further enhancing liquidity across our growing network of trading venues from centralised exchanges, OTC desks, market makers and prime brokers.”
Sebastien Badault, Executive VP of Enterprise Revenue at Ledger said:
“Our collaboration with Komainu and Bitfinex heralds a new era for capital markets through the launch of a new open protocol standard for off-exchange trading. We’ve long believed that establishing a unified standard for off-exchange collateral pledging and settlement among custodians, exchanges, and liquidity providers is crucial for scaling the institutional digital asset market. We’re delighted that Komainu and Bitfinex have chosen to integrate Ledger Tradelink technology, and we look forward to bringing this groundbreaking solution to market.”
As compliance gains increasing prominence “as regulations evolve, cryptocurrency exchanges bear a crucial responsibility to safeguard customer assets.”
Bitfinex’s collaboration with Komainu Connect highlights “the exchange’s proactive approach to compliance.”
Founded in 2012, Bitfinex is a digital token trading platform “offering state-of-the-art services for traders and global liquidity providers.”
In addition to a suite of advanced trading features and charting tools, Bitfinex provides access to peer-to-peer financing, “an OTC market and margin trading for a wide selection of digital tokens.”