On Friday digital asset custody firm Komainu announced it received a UK license from the Financial Conduct Authority (FCA), which primarily requires compliance with anti-money laundering legislation. Komainu is a joint venture founded by Nomura, Coinshares and tech firm Ledger.
In the UK, Komainu can now provide institutional crypto custody as well as collateral management services using Komainu Connect. The collateral management solution is similar to triparty arrangements in traditional finance (TradFi). The company uses a trust structure to ensure assets are bankruptcy remote.
The digital assets firm was founded in Jersey in 2018 and launched in 2020 with local regulatory approval. This year the company also achieved licenses from Dubai’s VARA and Italy’s OAM registry and has a presence in Singapore.
“This is a key regulatory milestone as the UK remains one of the most important hubs for financial technology and innovation that will spur the convergence of traditional and decentralized finance,” said Nicolas Bertrand, Komainu CEO. “We are perfectly positioned to take advantage of the growing digital asset ecosystem in the UK, and other key jurisdictions, and remain committed to our growth plans.”
In 2021, Komainu raised a $25 million Series A funding round, including from Alan Howard of Elwood.
Another institution-backed digital asset custody firm active in the UK is Zodia Custody, backed by Standard Chartered, Northern Trust and Japan’s SBI.
