On 5 November 2024, OKX, a major global cryptocurrency exchange registered in the Republic of Seychelles, and Komainu, a regulated digital asset service provider and custodian headquartered in Jersey announced an extension of their partnership to provide institutional clients with an improved off-exchange custody solution. This partnership aims to strengthen the security and efficiency of digital asset trading for institutional investors, a group that increasingly seeks secure and compliant solutions in the growing virtual assets market.
In June 2023, OKX initially partnered with Komainu by joining Komainu’s collateral management platform, Komainu Connect. This collaboration allowed institutional clients to securely trade assets held in segregated custody with Komainu while utilising OKX’s trading infrastructure. This arrangement provided clients with an off-exchange settlement system that mitigates counterparty risk by storing assets with a regulated custodian, thus enabling trading activities while enhancing asset security.
The OKX and Komainu off-exchange custody solution include features aimed at institutional traders. The solution now supports both spot and derivatives transactions on OKX, catering to a broader range of trading needs. Additionally, clients benefit from automated profit and loss settlements between OKX and the collateral wallet held with Komainu, thereby optimising capital efficiency. Another feature is the 24/7 collateral adjustment capability, allowing clients to adjust collateral levels in real time directly from the Komainu portal. This functionality enhances liquidity management and trading efficiency, critical factors for institutional clients operating in dynamic market environments.
Other improvements include access to detailed transaction and settlement history through the Komainu portal, which provides institutional clients with a consolidated view of custody and collateral wallets. This consolidated reporting and transaction tracking support rigorous audit processes and provide greater transparency for compliance purposes.
By providing an institution-grade custody and trading infrastructure, this collaboration addresses one of the core challenges in the virtual asset industry: the need for secure and compliant solutions that mitigate counterparty and operational risks. OKX’s Chief Commercial Officer, Lennix Lai, stated that the partnership’s expanded services are tailored to meet institutional standards for security and efficiency, blending Komainu’s regulated custodial services with OKX’s extensive trading infrastructure. He emphasised that the partnership brings substantial support for clients executing both spot and derivatives transactions on the OKX platform.
Paul Frost-Smith, Co-Chief Executive Officer of Komainu, expressed enthusiasm for extending the off-exchange solution to a broader client base. He stated that the collaboration embodies Komainu’s mission of delivering secure and compliant digital asset services. Robert Johnson, Co-Chief Executive Officer at Komainu, added that leveraging Komainu’s custodial expertise with OKX’s trading capabilities enables the creation of a robust, efficient, and secure digital asset network that meets the demands of institutional clients for segregated, compliant, and frictionless trading.
OKX Institutional’s infrastructure, supported by its partnership with Komainu is offerings custody solution, which enables firms to execute trades and manage capital efficiently while ensuring that assets remain safely stored off-exchange with a regulated custodian. By offering secure, efficient, and compliant solutions, the collaboration contributes to building a resilient and trusted global virtual asset ecosystem, ultimately supporting the long-term growth of digital asset markets.
