TL;DR
- Bitfinex partners with Komainu Connect to enhance security for institutional cryptocurrency trading.
- The integration uses Ledger Tradelink™ technology to enable secure off-chain trading.
- This agreement strengthens Bitfinex’s ability to offer regulated custody options to its institutional clients.
Bitfinex, one of the world’s most advanced digital asset exchange platforms, has announced a strategic collaboration agreement with Komainu Connect, a regulated digital custodian backed by Ledger.
This partnership seeks to integrate a remote custody solution that allows institutional investors to take advantage of Bitfinex’s deep liquidity and advanced trading features, while maintaining the security of their assets in a separate, regulated custody environment.
We’re pleased to welcome @KomainuCustody as our latest remote custodian.
Soon you will be able to trade safely on Bitfinex while keeping your assets in cold storage with Komainu and @Ledger Tradelink! pic.twitter.com/zujpCO5RXU— Bitfinex (@bitfinex) August 15, 2024
The key to this collaboration lies in Ledger Tradelink™ technology, which facilitates off-chain trading and settlement.
This means that institutions can trade on Bitfinex without the need for frequent asset transfers on the blockchain, which in turn minimizes risk and ensures an uninterrupted trading experience.
This innovative approach not only improves security but also offers greater efficiency in operations, a crucial factor for large players in the digital asset market.
Additionally, this integration is part of a series of remote custody solutions that Bitfinex has been implementing in collaboration with other partners, such as CopperHQ and ZodiaCustody.
These solutions have proven popular with institutional clients, who seek to combine the security of regulated custody with the advantages of operating in one of the most liquid cryptocurrency markets in the world.
Once traders with assets on Komainu Connect and a verified account on Bitfinex wish to trade, they will be able to allocate a portion of their custodial assets for trading.
Komainu will initiate a lock on the assets, notify Bitfinex via an API connection, and upon approval, Bitfinex will reflect the locked balance in the trader’s account, thus allowing for seamless trading.
Bitfinex Ecosystem Expansion
Bitfinex CTO Paolo Ardoino said the collaboration reflects the company’s commitment to expanding secure trading options for its clients, providing an additional layer of security for institutional investors by allowing them to leverage Komainu’s regulated custody solution while accessing Bitfinex’s robust trading environment.
For his part, Paul Frost-Smith, Co-CEO of Komainu, expressed his enthusiasm for the integration, noting that this collaboration expands the ecosystem of trusted exchanges, improving liquidity across a growing network of trading platforms, including centralized exchanges, OTC desks, market makers and prime brokers.
Finally, Sebastien Badault, Executive Vice President of Enterprise Revenue at Ledger, stressed the importance of establishing a unified standard for collateral pledging and off-chain settlement across custodians, exchanges, and liquidity providers, a key step to scaling the institutional digital asset market.
With this partnership, Bitfinex and Komainu not only strengthen their position in the market, but also lay the foundation for a new open protocol in cryptocurrency trading.
In an environment where compliance and security are increasingly crucial, this collaboration between Bitfinex and Komainu highlights Bitfinex’s proactivity in protecting its customers assets and adapting to an ever-evolving regulatory landscape.
