Cryptocurrency exchange OKX has recently partnered with custodian provider Komainu and asset manager CoinShares, in an effort to encourage institutional adoption. This strategic collaboration is designed to facilitate round-the-clock trading of segregated assets, addressing a crucial concern for institutional traders—counterparty risks.
The partnership includes the execution of trades at OKX Exchange, while Komainu protects the collateral assets. This aims to reduce counterparty risk, providing institutional traders with the same level of assurance as in a traditional financial market.
Furthermore, the collaboration establishes an effective legal framework which enhances the trustworthiness of transactions between institutions. Through initiatives like these, the crypto industry works towards creating a secure environment for institutional transactions.
Sebastian Widmann, Head of Strategy at Komainu, said: “This step is important to get institutions to adopt digital asset. As independent, trusted and regulated custodians of collateral assets throughout the trading lifecycle, we strive to inspire confidence in our institutional clients.”
Lennix Lai, Chief Commercial Officer at OKX, added: “Despite the presence of secure custody solutions, regulatory structures, and increased exchange liquidity, counterparty risks remain a major obstacle for institutional traders. This partnership provides a legally robust mechanism for the mutual management of assets, demonstrating expertise in negotiating complex tripartite agreements covering collateral, security, and legal risks—critical aspects for institutional investors.”