Top crypto exchange OKX has partnered with Komainu Connect, a collateral management platform to secure assets of institutional investors. Komainu Connect will give OKX’s institutional customers access to secure, around-the-clock trading of segregated assets under custody.
The arrangement will also increase the trust of institutional investors in the crypto space, by giving them unmatched custodial security for their assets. The Connect platform will mitigate counterparty risks for clients and eliminate the need for customers to store collateral with trading partners, by offering them the ability to keep assets in safe custody.
“We’re paving the way for a new era of trust and innovation in the industry,” Nicolas Bertrand, the CEO at Komainu, commented. “The combination of OKX’s reputation as a leading cryptocurrency exchange and our expertise in providing institutional-grade custody services is what makes this partnership strategic.”
OKX is currently the second largest cryptocurrency exchange in the world by trading volume, and its partnership with Komainu only goes to show how trustworthy the platform is as a custodial services provider, according to Head of Komainu strategy, Sebastian Widmann.
OKX has been pursuing expansion in all areas and taking care of institutional clients seems like an important step towards achieving this.
The Need for Securing Institutional Clients
The main goal of cryptocurrency is to make financial services available to everyone, regardless of location. This can only be achieved through mass adoption of cryptocurrencies, and institutional clients are the most important in driving this move for two reasons.
First their confidence in the crypto space will boost the confidence of retail investors. In the early years of crypto, many retail investors stayed away from the assets because there were no institutional investors showing interest in the industry. That has changed now that institutional investors are investing in the space.
Secondly, Institutions can influence their employees to buy into cryptocurrencies by payment of salaries using crypto and other programs. This will significantly boost participation and ensure that more people come into the space.
OKX giving priority to the security of institutional clients is therefore a timely move, and it may mark a new phase of growth both for the exchange and the crypto space at large.
According to the exchange’s Global Chief Commercial Officer Lennix Lai, “Institutions need peace of mind knowing their assets are safe with a leading custodian while retaining their ability to capitalize on investment opportunities. That’s why we are delighted to partner with Komainu.”
OKX has its headquarters in Seychelles, but has offices all over the world. It however recently started embarking on fresh spread of its offices to other crypto-friendly jurisdictions. In March this year, the exchange set up its office in Hong Kong where crypto-friendly regulations have been set up.
It has also applied for a virtual assets license in the region. This will give it legal backing to operate in the region where many other crypto companies are rushing to. More recently, the exchange also applied for a digital assets services provider (DASP) license in France in order to fully comply with the country’s regulatory requirements.
To further boost investors’ confidence, OKX recently unveiled a proof of reserves report. The report shows that the exchange has $10 billion in collateral for BTC, ETH and USDT, suggesting that it is committed to winning the confidence of institutional investors.