OKX Partners with Komainu and CoinShares for Institutional Adoption
OKX, a crypto exchange, has teamed up with custody provider Komainu and asset manager CoinShares to enable round-the-clock trading of segregated assets. The aim is to push institutional adoption of digital assets forward.
CoinShares will be responsible for trading on the OKX exchange, while Komainu, a third-party custody provider, will hold the collateral assets. This setup helps mitigate counterparty risks in trading transactions.
According to Sebastian Widmann, head of strategy at Komainu, this partnership mirrors traditional financial market infrastructure and provides additional assurances to clients throughout their trading lifecycle. Lennix Lai, the chief commercial officer at OKX, believes that this development addresses one of the remaining hurdles for institutional traders: counterparty risks.
Addressing Institutional Traders’ Concerns
Lai emphasized that secure custody solutions and regulatory frameworks are in place, but counterparty risk remains a significant concern for institutional traders. The new partnership aims to reinforce trust and confidence among institutional traders by creating a more reliable landscape for transacting in digital assets.
Lewis Fellas, head of hedge fund solutions at CoinShares, highlighted that the partnership establishes a legally robust mechanism for mutual asset management. He also emphasized the importance of negotiating complex agreements that cover collateral, security, and legal risks for institutional investors.
Hot Take: Strengthening Institutional Confidence in Crypto
The collaboration between OKX, Komainu, and CoinShares is a significant step towards enhancing institutional confidence in the crypto space. By addressing concerns related to counterparty risks and providing secure custody solutions, this partnership sets the stage for increased participation from traditional finance investors within the digital asset ecosystem.
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