Crypto exchange OKX has partnered with custody provider Komainu and asset manager CoinShares to facilitate round-the-clock trading of segregated assets to push institutional adoption of digital assets forward.<\/p>\n
According to OKX, CoinShares will trade on the OKX exchange, while Komainu, a third-party custody provider, holds the collateral assets. This is done to mitigate counterparty risks, such as the other party failing to fulfill its part of the deal in a trading transaction. <\/p>\n
According to Sebastian Widmann, head of strategy at Komainu, this is a necessary step to attract institutions to adopt digital assets, as it mirrors traditional financial market infrastructure. \u201cBy acting as independent, trusted and regulated third-party custodians for collateral assets, we give our clients additional assurances throughout their trading lifecycle,\u201d Widmann said in a statement. <\/p>\n
Lennix Lai, the chief commercial officer at OKX, believes that the new development addresses one of the remaining hurdles for institutional traders, counterparty risks. He explained: <\/p>\n
\u201cSecure custody solutions are live. Regulatory frameworks are taking shape. Exchange liquidity is deepening alongside the development of the trading ecosystem. However, counterparty risk is a big remaining hurdle for institutional traders.\u201d<\/p><\/blockquote>\n
According to Lai, this protection reinforces the trust and confidence of institutional traders and creates a more reliable landscape for them to transact in digital assets. In a previous interview with Cointelegraph, Lai stated it\u2019s important to raise compliance standards to bring in more traditional finance investors within the crypto space.\u00a0<\/p>\n