OKX joins Komainu and CoinShares for institutional segregated asset trading
Crypto exchange OKX has partnered with custody provider Komainu and asset manager CoinShares to facilitate round-the-clock trading of segregated assets to push institutional adoption of digital assets forward.
According to OKX, CoinShares will trade on the OKX exchange, while Komainu, a third-party custody provider, holds the collateral assets. This is done to mitigate counterparty risks, such as the other party failing to fulfill its part of the deal in a trading transaction.
According to Sebastian Widmann, head of strategy at Komainu, this is a necessary step to attract institutions to adopt digital assets, as it mirrors traditional financial market infrastructure. “By acting as independent, trusted and regulated third-party custodians for collateral assets, we give our clients additional assurances throughout their trading lifecycle,” Widmann said in a statement.
Lennix Lai, the chief commercial officer at OKX, believes that the new development addresses one of the remaining hurdles for institutional traders, counterparty risks. He explained:
According to Lai, this protection reinforces the trust and confidence of institutional traders and creates a more reliable landscape for them to transact in digital assets. In a previous interview with Cointelegraph, Lai stated it’s important to raise compliance standards to bring in more traditional finance investors within the crypto space.
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Meanwhile, Lewis Fellas, head of hedge fund solutions at CoinShares, said the partnership creates a “legally robust mechanism” for the mutual management of assets. According to Fellas, the partnership also demonstrates the company’s expertise in “negotiating
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