Crypto exchange OKX has formed a partnership with custody provider Komainu and asset manager CoinShares to advance the institutional adoption of digital assets. This partnership aims to facilitate the trading of segregated assets around the clock. With this step, OKX will be able to provide derivatives trading without the counterparty risk associated with exchange-held assets.
Additionally, CoinShares will now be traded on the OKX exchange and Komainu will be the third-party custodian holding the collateral assets. This regulation aims to reduce counterparty risks in commercial transactions, that is, the risk that the other party will not be able to fulfill its part of the agreement.
Komainu’s head of strategy, Sebastian Widmann, stated that this move was necessary to encourage institutions to adopt digital assets. “By acting as independent, trusted and regulated third-party custodians for collateral assets, we give our clients additional assurances throughout their trading lifecycle,” said Widmann.