Institutional Crypto Trading with Off-Exchange Custody and Collateral
Summary
The document describes an institutional trading arrangement in which assets remain in segregated custody with Komainu while clients trade on a separate platform. The custody and collateral service is designed to reduce direct counterparty exposure to the trading venue while allowing trading around the clock. Enhancements described include support for spot and derivatives, 24/7 changes to delegated collateral, transaction and settlement records, and a combined view of custody and collateral balances.
The setup uses collateral mirroring and intraday settlement to support capital use and liquidity. The article cites a prior collaboration announcement and names CoinShares as an early client, but it does not provide independent performance data, security testing, costs, or details of the legal and operational protections. Traders evaluating this structure would still need to assess custody, settlement, collateral-control, and venue risks; the document is a service announcement rather than a comparative analysis.
Key ideas
- Off-exchange custody keeps client assets with a third-party custodian while trading occurs on a venue.
- Collateral can be delegated and adjusted through the custodian portal at any time.
- The expanded service covers spot and derivatives and provides settlement histories and consolidated wallet views.
- Collateral mirroring and intraday settlement are presented as ways to improve capital use and liquidity.
- The announcement provides no independent evidence on costs, performance, or the effectiveness of its risk controls.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.