- Summary:
- The partnership will enable OKX clients to use Komainu Connect to settle transactions in a way that reduces counterparty risk substantially.
Web3 technology and regulated digital asset custody service provider Komainu has formed a partnership with OKX, the world’s second-largest cryptocurrency exchange by trading volume, to launch a new collateral management platform called Komainu Connect. This move allows OKX’s institutional clientele to trade segregated assets under custody safely and securely around the clock.
How the partnership changes institutional settlements
Komainu Connect, a supervised settlement and custody platform for institutional clients, launched in April 2023. It features a combination of cold storage, multiparty computation (MPC), and hardware security modules (HSM) to enable trading around the clock. By allowing users to hold their collateral outside of their trading counterparties, the platform lowers their counterparty risk substantially.
There is a formal agreement between Komainu, in its capacity as custodian, OKX, in its capacity as liquidity venue and provider, and Komainu’s client, in its capacity as OKX’s client. Once funds are deposited into an OKX account, they will be transferred from a Komainu custody wallet to a Komainu collateral wallet. These funds are subsequently reflected in the OKX account, which can be used to trade on any of OKX’s more than 700 spot and derivatives markets. Komainu’s client can now trade on the exchange directly, with Komainu handling all necessary settlement procedures.
Large institutional crypto traders that need instantaneous access to OKX’s market-leading portfolio margin account mode and liquid markets would benefit greatly from the off-exchange settlement and tripartite mirroring solution. Komainu is a custodian service launched in June 2020 and is used by stock exchanges, banks, asset managers, enterprises, and even government agencies.
OKX is widely recognised as a premier cryptocurrency exchange, and Komainu is a trusted provider of institutional-grade custody services. Together, they hope to usher in a new era of confidence and innovation in the cryptocurrency market. The team continues to prioritise a smooth process for all participants, and investors now have a method for protecting their assets without reducing their potential rewards.