- Bybit partners with regulated custodian Komainu to integrate Komainu Connect, enhancing security for institutional clients.
- Assets remain in third-party custody while tradable on the exchange, reducing counterparty risk and improving capital efficiency.
- Komainu Connect offers automated off-exchange settlement, transparent wallets, and extensive support for institutional-grade assets.
Bybit, the second-largest crypto trading platform, has launched a strategic partnership with Komainu. Komainu is a regulated digital asset custodian company backed by Laser Digital and Blockstream.
The collaboration involves using the collateral management service Komainu Connect from Komainu. This provides institutional investors with secure and regulated trading services.
This partnership enables institutional investors to conduct transactions 24/7 while holding their funds in secure custody with a third party. This way, clients are able to minimize counterparty risk and still have access to trading markets.
The partnership enables the client not to pre-fund transactions in the exchange platform because there are automatic off-exchange reconciliations that operate 24/7.
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Integration Meets Demand for Secure and Efficient Trading
Komainu Connect provides functionality that makes institutional trading simpler. All assets in the collateral wallets are represented in the exchange, providing complete visibility over the collateral (100%).
The assets are maintained in individual wallets in the blockchain system and are considered bankruptcy-remote. Every customer has their own dedicated wallet.
The system currently handles a continually expanding list of institutional assets. This means that it can support very large portfolios.
Together, these steps mitigate risk and increase efficiency in a way that is important to the professional investors who are managing big AUM.
Paul Frost-Smith, Co-CEO of Komainu, underscored the significance of both regulated custody and market access to the institutional investor.“The time has come for investors who are in source control with respect to their investments.
This is what they have built and believe in, connecting Komainu’s safekeeping with seamless trading, he said, underlining how the relationship enlarges his firm’s cluster of credible trading partners.
Bybit Prioritizes Client Trust with Regulated Custody
The Komainu Connect platform is expanding through direct connection with exchanges, lenders, and brokers. This provides seamless and smooth connections while offering clients access across a vast network of counterparties without diminishing security.
Yoyee Wang, responsible for Bybit’s Business-to-Business division, stated that earning and retaining client trust has always remained Bybit’s biggest concern.
Bybit would utilize Komainu Connect in providing compliant custody solutions combined with the scale and flexibility that institutional investors require.
This partnership brings Bybit a more secure and optimized system for institutional trading business. For professional investors specializing in risk and regulatory compliance, this partnership may be considered beneficial.
By working together, Bybit and Komainu are filling the rising need present in the crypto market regarding secure and compliant institutional trading.
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