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One of the world’s top crypto exchanges, Bitfinex, has partnered with Komainu Connect, a Ledger-backed regulated digital asset custodian for a unique remote custody solution.
One of the top cryptocurrency exchanges in the world, Bitfinex, has partnered with Komainu Connect, a Ledger-backed regulated digital asset custodian. Per the company’s blog post on Thursday, the two have inked a memorandum of understanding (MoU) that will enable them to improve institutional investors’ access to cryptocurrency trading and custody. That is, by providing them with an alternative to the present trading environment that is safer and more liquid.
Bitfinex and Komainu Promise Improved Security and Liquidity for Institutional Investors
What forms the bedrock of this new development is a unique remote custody solution. The goal of this solution is to make asset transfers between custody and the exchange platform as seamless as possible. It will leverage Ledger Tradelink technology, enabling efficient off-exchange trading and settlement processes.
Speaking about the collaboration, Paolo Ardoino, Chief Technology Officer at Bitfinex, has said it is a further testament of the company’s commitment to expanding secure trading options for its clients. His statement also reads partly:
“ …It provides an additional layer of security for institutional investors by allowing them to leverage Komainu’s regulated custody solution while still accessing Bitfinex’s robust trading environment.”
Ardoino also noted that the partnership draws strength from both sides, using Komainu’s regulated custody solutions while benefiting from Bitfinex’s extensive trading platform.
Under this new arrangement, institutional clients will have access to Bitfinex’s deep liquidity pools and advanced trading features. At the same time, their assets will be safeguarded by Komainu’s advanced custody infrastructure. This dual approach aims to deliver an optimal balance of security and trading efficiency.
Paul Frost-Smith, Co-CEO of Komainu, expressed his excitement about the collaboration. He hailed the move to join forces with Bitfinex as a landmark achievement for Komainu, saying:
“This partnership broadens our ecosystem of reliable exchanges, boosting liquidity across various trading platforms including centralized exchanges, OTC desks, market makers, and prime brokers.”
Meanwhile, commentaries have also poured in from Ledger about the strategic partnership. Sebastien Badault, Executive Vice President of Enterprise Revenue at Ledger, has shared his optimism about Bitfinex and Komainu teaming up. He said he believes that this partnership could set a new standard for off-exchange collateral pledging and settlement.
From what it might be worth, this new development is a breath of fresh air for the industry. Most especially, for institutional investors.
The solution, which will be a by-product of the ongoing partnership between Bitfinex and Komainu Connect, is set to change the crypto space in ways that can only be imagined. The two firms are set to offer a solution that fuses Komainu’s well-advanced custodial services with Bitfinex’s trading infrastructure.
