Bitfinex has entered into a memorandum of understanding (MOU) with Komainu Connect, a regulated custodian backed by Ledger, to offer a secure and liquid trading environment for institutional investors, according to a Thursday press release.
The collaboration is exploring a new remote custody solution to enable seamless asset transfers between custody and exchange. The companies said they’ve adopted Ledger Tradelink technology for off-exchange trading and settlement.
“Our collaboration with Komainu Connect reflects our commitment to expanding secure trading options for our customers and provides an additional layer of security for institutional investors by allowing them to leverage Komainu’s regulated custody solution while still accessing Bitfinex’s robust trading environment,” Paolo Ardoino, CTO of Bitfinex, stated.
According to Bitfinex, the joint solution will offer institutions access to Bitfinex’s deep liquidity and advanced trading features while maintaining the security of their assets with Komainu.
Paul Frost-Smith, Co-CEO at Komainu, expressed enthusiasm about joining forces with Bitfinex to boost liquidity across their network.
“This collaboration expands our ecosystem of trusted exchanges, further enhancing liquidity across our growing network of trading venues from centralized exchanges, OTC desks, market makers and prime brokers,” said Frost-Smith.
Sebastien Badault, Executive VP of Enterprise Revenue at Ledger, believes the initiative could set a new standard for off-exchange collateral pledging and settlement.
“We’ve long believed that establishing a unified standard for off-exchange collateral pledging and settlement among custodians, exchanges, and liquidity providers is crucial for scaling the institutional digital asset market,” Badault stated.
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