OKX, one of the leading cryptocurrency exchanges, has partnered with Komainu, a trusted provider of digital asset storage solutions. This collaboration empowers institutional users to securely store their cryptocurrencies with the custodian supported by Nomura. Simultaneously, they can utilize these assets for trading purposes on the OKX exchange.
This partnership showcases how vertically integrated cryptocurrency exchanges are adopting a similar approach to traditional finance. By utilizing third-party custodians, they are segregating operations, aiming to mitigate the risk of potential collapses like the one witnessed with FTX.
As the inaugural client of Komainu Connect, OKX is taking advantage of a regulated settlement and custody system designed specifically for institutional customers. This comprehensive system provides round-the-clock trading capability while employing a combination of cold storage, multiparty computation (MPC), and hardware security modules (HSMs) to ensure robust security measures.
According to Lennix Lai, the Chief Commercial Officer of OKX, when funds are deposited into a Komainu custody wallet, they are subsequently transferred to a Komainu collateral wallet. These funds are then seamlessly linked to an OKX account.
Upon completion of the aforementioned process, the OKX account seamlessly reflects the deposited balance, facilitating active trading across OKX’s extensive array of over 700 spot and derivatives markets.
Sebastian Widmann, the Head of Strategy at Komainu, clarified that the Komainu Connect collateral wallet, which OKX has access to, is associated with an institutional-grade tri-party account change agreement.
Widmann stated that “There exists a tri-party legal agreement between Komainu as the custodian and OKX as the liquidity venue and provider, and Komainu’s client, as the client of OKX.”
Komainu’s clients can directly engage in trading on the exchange while Komainu handles all necessary settlement obligations.
However, OKX declined to provide specific details on the amount of assets to be transferred to Komainu, but Lennix Lai, CCO of OKX, confirmed that it would be a “significant” sum.
Furthermore, Lai expressed optimism about further growth of these transferred assets as both companies continue to enhance their institutional product offerings.
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