The digital asset landscape continues to mature, with institutional adoption driving demand for secure, compliant, and efficient trading and custody solutions. In response, OKX, a leading global cryptocurrency exchange and on-chain technology innovator, has deepened its strategic partnership with Komainu, a regulated digital asset custodian built specifically for institutional clients. Together, they are delivering an advanced off-exchange custody solution that redefines security, scalability, and operational efficiency in crypto trading.
This collaboration empowers institutions to trade seamlessly on the OKX platform while keeping their assets securely held in segregated custody with Komainu—eliminating counterparty risk without sacrificing liquidity or trading flexibility.
A Secure Foundation: The Evolution of Off-Exchange Custody
In June 2023, OKX integrated with Komainu Connect, Komainu’s institutional-grade collateral management platform. This integration enabled clients to trade assets held under third-party custody—off the exchange’s balance sheet—while still accessing OKX’s high-performance trading infrastructure 24/7.
Now, the enhanced solution introduces critical upgrades designed to meet the complex needs of institutional traders, hedge funds, asset managers, and fintech firms operating in the digital asset space.
👉 Discover how top institutions are securing their crypto assets without compromising trading access.
Key Enhancements in the OKX-Komainu Solution
The latest developments bring greater automation, transparency, and control to institutional custody workflows:
- Expanded Support for Spot and Derivatives Trading: Clients can now use off-exchange custody not only for spot transactions but also for derivatives trading—significantly broadening use cases across market strategies.
- Automated Settlement of P&L: Profits and losses from trades are automatically settled between OKX and the client’s collateral wallet hosted in Komainu custody. This reduces manual reconciliation, improves capital efficiency, and minimizes settlement delays.
- 24/7 Collateral Adjustment: Institutions can adjust the amount of collateral delegated to OKX at any time via the Komainu portal. This real-time flexibility supports dynamic risk management and leverages intraday market movements.
- Comprehensive Transaction History: Full audit trails of all transactions and settlements are accessible through the Komainu portal, enhancing compliance readiness and internal oversight.
- Unified View of Custody and Collateral Wallets: Clients gain a holistic dashboard that consolidates information across custody and trading accounts—streamlining reporting and improving operational visibility.
These features collectively create a frictionless environment where security does not come at the cost of performance.
Why Institutional Trust Matters in Crypto
As more traditional financial players enter the digital asset ecosystem, trust and regulatory compliance are paramount. The OKX-Komainu solution addresses two major concerns head-on:
- Counterparty Risk Mitigation: By ensuring assets remain in regulated, segregated custody during trading, institutions avoid exposure to exchange insolvency or mismanagement.
- Regulatory Alignment: Komainu operates under strict regulatory frameworks, providing peace of mind for firms navigating complex compliance environments.
This is especially crucial as global regulators intensify scrutiny on crypto custody practices. Solutions like this set a benchmark for what secure institutional-grade infrastructure should look like.
Real-World Impact: CoinShares Leads the Way
The partnership’s value was demonstrated immediately when CoinShares, Europe’s leading digital asset investment firm, became the first client to adopt the solution. Announced on November 15, 2023, this integration allows CoinShares to execute 24/7 trading on OKX while maintaining full control over its assets through Komainu’s regulated custody.
This model enables firms like CoinShares to offer crypto products with enhanced transparency and investor protection—key selling points in attracting mainstream capital.
Executive Insights: Building the Future of Institutional Crypto
Leaders from both organizations emphasize the strategic importance of this evolution.
Lennix Lai, Global Chief Commercial Officer at OKX, stated:
“Institutional clients require the highest levels of security and efficiency, and our custody partnerships deliver this for a range of client needs. Our expanded partnership with Komainu combines their regulated custodial services with our robust trading infrastructure and deep liquidity to offer greater scale and support for off-exchange custody clients who execute spot and derivatives transactions on our platform.”
Paul Frost-Smith, Co-CEO at Komainu, added:
“We are excited to expand our reach, offering our enhanced OKX off-exchange solution to more clients. This collaboration is testament to our mission of providing secure and compliant digital asset servicing solutions.”
Robert Johnson, also Co-CEO at Komainu, emphasized the user experience:
“By leveraging our industry-leading custodial offering and OKX’s robust trading infrastructure, we are building a high-quality network for our clients, to deliver a frictionless, segregated and secure experience.”
👉 See how leading institutions are combining security with seamless trading execution.
FAQ: Understanding Off-Exchange Custody
Q: What is off-exchange custody?
A: Off-exchange custody means holding digital assets with a regulated third-party custodian (like Komainu) instead of depositing them directly onto an exchange. This reduces counterparty risk while still enabling active trading through connected platforms like OKX.
Q: How does automated P&L settlement work?
A: After each trade, profits or losses are automatically calculated and settled between the exchange (OKX) and the client’s collateral wallet in Komainu. This eliminates manual processes and ensures accurate, timely updates to collateral balances.
Q: Can I adjust my collateral outside market hours?
A: Yes. The Komainu portal allows 24/7 access for collateral adjustments, giving institutions full control over their risk exposure at any time.
Q: Is this solution available globally?
A: While subject to local regulations, the partnership targets global institutional clients seeking compliant ways to trade digital assets securely.
Q: Which types of institutions benefit most from this solution?
A: Hedge funds, asset managers, family offices, fintech platforms, and ETF issuers—all benefit from combining strong security with high-frequency trading capabilities.
Q: Does this support both spot and derivatives markets?
A: Yes. The upgraded solution now fully supports both spot and derivatives transactions under one secure custody framework.
👉 Learn how your institution can start trading securely with segregated asset custody.
Core Keywords
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Conclusion
The expanded partnership between OKX and Komainu represents a significant leap forward in institutional crypto infrastructure. By merging cutting-edge trading technology with rigorously regulated custody services, they’ve created a model that balances security, scalability, and operational agility.
As the industry moves toward greater institutionalization, solutions like this will become the standard—not the exception. For firms looking to trade actively while protecting capital, the OKX-Komainu off-exchange custody offering sets a new benchmark in trust and performance.