The pieces of the growth plans that digital assets custodian Komainu set out for itself appear to be coming together, albeit gradually.
The pieces of the growth plans that digital assets custodian Komainu set out for itself appear to be coming together, albeit gradually. This follows a recent announcement by the Nomura-backed firm, where it shared that it has successfully raised $75 million in a Series B funding round.
While the investment came from the venture arm of Bitcoin infrastructure company Blockstream, the interesting part is that the entire funding was done in Bitcoin BTC $98 745 24h volatility: 0.2% Market cap: $1.96 T Vol. 24h: $53.19 B .
Although the transaction remains subject to approval from the relevant authorities, it certainly increases Komainu’s potential to widen its global reach. Furthermore, the Jersey-based firm will also be looking to establish its own Bitcoin treasury.
Notably, Komainu’s international growth plans have been gathering momentum in recent times. In October, the company acquired crypto custodian Propine as it sought to spread its tentacles to Asia, beginning with Singapore.
However, the firm’s latest partnership with Blockstream is a step further as Komainu will be seeking to leverage Blockstream’s various technologies for its own growth purposes.
For context, Komainu will use Blockstream’s Liquid Network to enhance client services in collateral management and tokenization. This means that Komainu may drastically reduce the time for its off-exchange margining and settlement solution, Komainu Connect. simply by integrating with the Liquid Network.
With this, settlement time is expected to go from hours to minutes, making operations easier for international clients.
Other benefits that Komainu stands to gain from this partnership are Blockstream’s AMP technology and its enterprise HSM wallet. The AMP technology, through the API platform, will help Komainu automate regulated asset tokenization and develop trustless trading solutions. The HSM wallet, however, offers institutional clients a broader range of bank-grade digital asset services.
Lastly, the partnership also means that some of the top executives from Blockstream will come onto Komainu’s board. These include Adam Back, PeterPaul Pardi, and Nicolas Brand.
Komainu co-CEO Paul Frost-Smith is highly optimistic about the new partnership with Blockstream. He reiterates his firm’s commitment to becoming a go-to provider of digital asset services for Bitcoin. However, he also notes that this partnership is a major boost for the institutional market as well. That is, as it will drive further institutional adoption, making Komainu a bigger name within the crypto space.
Blockstream, on the other hand, continues to make strides of its own within the Bitcoin ecosystem. The firm raised $210 million in convertible note financing and has actively committed the same funds to expand its mining business, promote its Layer 2 technologies, and strengthen its Bitcoin treasury.
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Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He's a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa's fancied distractions include soccer or discussing world politics.
