Global investment bank Nomura, digital asset security company Ledger, and pioneer digital asset investment house CoinShares, share further details of Komainu, a digital asset custody business for institutional investors.
Komainu is the first hybrid institutional-grade custodian for institutional investors designed by finance and security leaders with the belief that decentralised finance needs to be institutionalised, regulatory compliant and secure for institutions looking to incorporate digital assets into their investment strategies.
Komainu is regulated by the Jersey Financial Services Commission as a custodian and depositary and provides custody for a range of digital assets on an institutionally compliant platform powered by a Ledger bespoke environment.
Through the partnership, Komainu draws on expertise from banking, fund management and cyber-security and provides an optimised application-based solution allowing multi-asset support benefits, regulatory compliance and insurance, while giving peace of mind to digital asset owners with built-in security protocols. The hybrid custody solution has the capability to integrate with legacy financial systems and works to seamlessly overlay services to complement native processes. Komainu only supports clients and tokens that satisfy AML and provenance requirements.
Komainu will be led by a team of experts handpicked by leadership from Nomura, Ledger and CoinShares. Jean-Marie Mognetti, Co-Founder and CEO of CoinShares, will also take the helm of Komainu. Kenton Farmer will serve as Head of Operations, bringing experience from financial service institutions such as Credit Suisse and Hermes Fund Managers. Andrew Morfill joins Komainu as Chief Information Security Officer after his position of Global Head of Cyber Defense at Santander Group, and his experience building the Cyber Intelligence division at Vodafone Group. Susan Patterson, Head of Regulatory Affairs, is a former regulator and has worked for industry leaders including Credit Suisse, Brevan Howard and UBS.
Jean-Marie Mognetti, CEO and Co-founder of CoinShares, and CEO of Komainu, said: “The growth and maturity of the digital asset industry highlights the true potential for decentralised finance. What this partnership has highlighted is the need for credible and solid service providers to support industry participants. Komainu bridges the gap by bringing financial expertise and capabilities for institutional clients to feel confident their assets are in safe hands.”
Jezri Mohideen, Global Chief Digital Officer, Wholesale at Nomura, said: “Through the joint venture between Nomura, Ledger and CoinShares we have successfully bridged the gap between legacy finance and emerging technology, establishing Komainu as a regulated and secure digital asset custody solution tailored to the needs of institutional clients. Komainu will act as a foundational pillar to Nomura’s digital asset strategy, enabling the firm to further progress with its initiatives across the full digital asset value chain, thereby setting out to become one of the leaders in the institutional digital asset industry.”
Pascal Gauthier, CEO of Ledger, said: “Institutions are looking for compliance and security when it comes to the custody of digital assets. With cryptocurrencies more prone to vulnerabilities, institutions' digital assets are weaponised against them without the proper security infrastructure in place. Through our combined experience, we have developed a sophisticated financial and security solution that will be the key institutional partner.”
Daniel Masters, Chairman of CoinShares said: “The case for digital assets as part of an investment portfolio, both as a source of diversification and as a countermeasure to rampant money supply expansion, is becoming clearer to institutions. The foundation for such institutional participation must be robust asset custody. Komainu combines best-in-class fiduciary and engineering expertise to deliver the required functionality and peace of mind.”