OKX Chooses Nomura-Backed Crypto Storage Firm Komainu as Custodian

OKX, the world’s 2nd largest cryptocurrency speech by trading volume, has enlisted the services of integer plus retention steadfast Komainu, allowing organization users to support their crypto wrong the Nomura-backed custodian portion utilizing those funds to commercialized connected the exchange.

It’s a concern that demonstrates however vertically integrated crypto exchanges tin commencement to emulate accepted finance, segregating operations utilizing 3rd enactment custodians, successful a bid to debar the anticipation of different FTX collapse.

OKX is the archetypal lawsuit to usage Komainu Connect, a regulated colony and custody strategy for organization customers that offers 24/7 trading with a premix of acold storage, multiparty computation (MPC) and hardware information modules (HSMs).

“Funds deposited successful a Komainu custody wallet are moved to a Komainu collateral wallet and past linked to an OKX account,” OKX main commercialized serviceman Lennix Lai told CoinDesk via email. “The OKX relationship past mirrors the equilibrium and allows progressive trading crossed OKX's 700-plus spot and derivatives markets.”

The Komainu Connect collateral wallet, which OKX has visibility into, is linked to an institutional-grade tri-party relationship alteration agreement, Komainu’s caput of strategy, Sebastian Widmann explained.

“There exists a tri-party ineligible statement betwixt Komainu arsenic the custodian and OKX arsenic the liquidity venue and provider, and Komainu’s client, arsenic the lawsuit of OKX,” Widmann said successful an interview. “This allows Komainu’s lawsuit to commercialized straight connected speech with Komainu taking attraction of the colony requirements.”

OKX would not spell into item astir however overmuch assets nether custody would beryllium transferred to Komainu, but Lai said it was “significant” and it's expected to turn arsenic the firms heighten their organization merchandise offering.

“Our standpoint is the much solutions users have, the better. We are offering on-exchange, off-exchange and third-party equilibrium reflector custody solutions,” Lai said.

Komainu was launched successful 2020 arsenic a associated task betwixt Nomura, integer plus manager CoinShares, and integer plus information institution Ledger. It’s regulated successful Jersey and Dubai with offices successful London, Dublin and Singapore.