Digital assets firm OKX revealed that it has expanded its partnership with Komainu in order to offer an off-exchange custody solution.
OKX noted in a recent blog post that they’re officially announcing that they’ve worked cooperatively with Komainu, a regulated digital asset service provider and custodian, in order to unveil an expansion of their partnership to offer institutional clients an off-exchange custody solution, thus helping with boosting the security of their digital assets.
In June of last year, OKX said they joined Komainu’s collateral management platform, Komainu Connect, to offer a “secure” off-exchange settlement solution for institutional clients.
This solution allows institutional clients to trade “segregated assets under custody through our platform 24/7.”
By providing them with the ability to store digital assets with a regulated third-party custodian, whilst trading on their platform, this solution “allows clients to better manage their counterparty risk.”
The latest enhancements to our off-exchange solution now include the following improvements for institutional clients:
- Scale and support: Supporting both spot and derivatives transactions
- Automated settlement: Client profit and losses are settled automatically between our platform and the client’s collateral wallet in Komainu, enhancing capital efficiency and further reducing counterparty risk
- 24/7 collateral adjustment: Users have the ability to adjust the amount of collateral delegated to our platform 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 influx of institutional traders in the crypto space, their off-exchange solution has attracted a range of digital asset firms seeking a way to trade their products.
Available 24/7, this solution offers clients capital use through real-time collateral mirroring and intraday “settlement modes, enhancing liquidity and trading efficiency.”
On November 15, 2023, they announced their collaboration with Komainu, which included CoinShares, a European alternative asset manager specializing in digital assets, as the first client, empowering CoinShares to conduct 24/7 trading” through their platform while assets are held in segregated custody with Komainu.”
Digital assets firm OKX also stated that they believe this enhanced custody solution delivers the highest levels of security and efficiency to institutional clients, “combining Komainu’s regulated custodial services with their robust trading infrastructure and deep liquidity.”
