Komainu, the institutional digital asset custody firm founded by Nomura, Coinshares and Ledger, has unveiled a new crypto collateral management solution that avoids the need to lodge cryptocurrency collateral at trading venues.
With the collapse of multiple crypto exchanges and lending platforms, keeping the collateral separate from trading venues is critical.
Komainu’s Connect solution uses triparty agreements in a similar way to traditional finance (TradFi). That way, when an investor transacts with a trading venue that could be at any time (24/7), Komainu confirms to the trading venue that the assets are held under custody in a segregated account. Typically under triparty agreements, the custodian performs various add on functions as well.
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