A global venture called Komainu has been created to provide a secure digital asset custody solution for institutional investors. Partners in the venture include Nomura, a global financial services group, Ledger, a digital asset security solutions provider, and Global Advisor Holdings, an international investment house.
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The new venture will establish an operational framework to allow investors to deploy best practices in the emerging digital asset sector, according to an announcement from Nomura.
The project includes top experts in fund management, digital asset security, asset administration and banking.
Komainu will meet the need for safe investment vehicles at a time when investor interest for digital assets is growing rapidly. Asset managers find existing investment vehicles lacking in the area of safety, citing a lack of regulatory, compliance and security criteria when it comes to digital assets.Ledger is best known for its cryptocurrency hardware wallets, but it also offers custodial solutions for wealthy investors.
The opportunity is abundant, with the 10 largest digital assets claiming a market capitalization of more than $300 billion, pushing institutional investors to find ways to tap this emerging asset class. Already, one-fifth of financial companies are looking at starting digital investment businesses within the year.
“Global investment managers have long been held back from full participation in digital asset markets, limited by operational and regulatory risk,” said Jez Mohideen, Nomura’s global chief digital officer. “Our new partnership will set the required standards that will bring peace of mind to digital asset investors, and provide tools and products to enable better integration with more traditional investment vehicles such as mutual funds.”
An established security solution provider already exists in Ledger, which has sold more than 1 million Nano S hardware wallets, noted Pascal Gauthier, president of that company. The Vault, a key management solution that is hardware based marks a natural expansion of Ledger’s offering.
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“By bringing together financial industry experts and digital asset security leaders, our new venture will provide, for the first time, services and solutions built for business,” Gauthier said.
Global Advisors Holdings Limited, the parent company of CoinShares, has been seeking the type of custody solution that is readily available in the analog financial system, noted Jean-Marie Mognetti, co-principal of the company.
“After six years of research – and collaboration with our administration partner and its regulator – we now have demonstrable progress,” Mognetti said. “This will open new and exciting opportunities to global participants and contribute to move digital asset closer to mainstream offerings.”
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