OKX and Komainu have announced an expansion of their partnership to offer institutional clients an enhanced off-exchange custody solution, further boosting the security of their digital assets.
In June of 2023, OKX joined Komainu’s collateral management platform, Komainu Connect, to offer a secure off-exchange settlement solution for its institutional clients. This solution allows institutional clients to trade segregated assets under custody through the OKX platform 24/7. By providing clients with the ability to store assets with a regulated third-party custodian, whilst trading on exchange, this solution allows clients to better manage their counterparty risk, the firm writes.
The firm writes that the latest enhancements to OKX and Komainu’s off-exchange solution now include the following improvements for institutional clients:
Greater scale and support: Supporting both spot and derivatives transactions on OKX
Automated settlement: Client profit and losses are settled automatically between OKX and the client’s collateral wallet in Komainu, enhancing capital efficiency and further reducing counterparty risk
24/7 collateral adjustment: Ability to adjust the amount of collateral delegated to OKX 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 continued influx of institutional traders in the crypto space, OKX and Komainu’s off-exchange solution has attracted a range of digital asset firms seeking an innovative and secure way to trade OKX products, the firm says. Available 24/7, this solution offers clients optimised capital use through real-time collateral mirroring and intraday settlement modes, enhancing liquidity and trading efficiency.
On November 15, 2023, OKX announced its collaboration with Komainu, which included CoinShares as the first client, empowering CoinShares to conduct 24/7 trading through the OKX platform while assets are held in segregated custody with Komainu.
OKX Global Chief Commercial Officer Lennix Lai says: “Institutional clients require the highest levels of security and efficiency, and our custody partnerships deliver this for a range of client needs. Our expanded partnership with Komainu combines their regulated custodial services with our robust trading infrastructure and deep liquidity to offer greater scale and support for off-exchange custody clients who execute spot and derivatives transactions on our platform.”
Paul Frost-Smith, Co-CEO at Komainu says: “We are excited to expand our reach, offering our enhanced OKX off-exchange solution to more clients. This collaboration is testament to our mission of providing secure and compliant digital asset servicing solutions.”
Robert Johnson, Co-CEO at Komainu, adds: “By leveraging our industry-leading custodial offering and OKX’s robust trading infrastructure, we are building a high-quality network for our clients, to deliver a frictionless, segregated and secure experience.”
