OKX hopes to transform institutional digital asset trading in collaboration with Komainu and CoinShares by strengthening security and trust.
Crypto exchange OKX has partnered with custody provider Komainu and asset manager CoinShares, aiming to advance institutional adoption of digital assets through round-the-clock trading of segregated assets.
OKX states that while Komainu, a third-party custody service, will keep the collateral assets, CoinShares will transact on the OKX exchange. This partnership aims to lower counterparty risks, which arise when one party to a trade transaction defaults on its commitments.
OKX’s chief commercial officer, Lennix Lai, underlined how important this development is to institutional traders. He made the point that counterparty risk remains a top worry for institutional players in the digital asset market, even in light of the availability of secure custody solutions and the evolution of regulatory frameworks.
According to Lai, this new strategy will increase institutional traders’ trust and confidence, promoting a trustworthy atmosphere for digital asset transactions.
Head of CoinShares’ hedge fund solutions Lewis Fellas emphasized the partnership’s contribution to creating a stable legal foundation for asset management.
He said that the partnership demonstrates CoinShares’ capacity to manage intricate tripartite agreements, which are essential for resolving legal, collateral, and security issues—all of which are major worries for institutional investors.
In June 2023, OKX started collaborating with custody specialist Komainu, a CoinShares, Ledger, and Japanese bank Nomura partnership. In addition to addressing the complexities of swaps and derivatives from a trading perspective, the partnership has produced a standardized legal agreement that different counterparties can accept.
