Komainu to provide digital asset custodial services for CoinShares

CoinShares is a digital asset management firm for professional investors. It has offices in Jersey, Stockholm, London, and New York.

Led by Executive Chairman Daniel Masters, the CoinShares Group manages around $700 million in digital assets on behalf of a global investor base. CoinShares traded $3B in notional volume in 2019 and is on track to increase this in 2020.

CoinShares offers several exchange-traded products (ETPs) under the XBT Provider brand. The firm’s Bitcoin Tracker One ETP was the first Bitcoin-based security available on a regulated exchange when it listed on NASDAQ/OMX in Stockholm. XBT Provider’s ETPs provide exposure to the performance of digital currencies by synthetically tracking the performance of the price of a tracked asset less a fee. XBT Provider ETPs have approximately $722.5 mn of assets under management. The ETPs are available for European traders on Nasdaq OMX Stockholm, Nordic Growth Market, and Boerse Stuttgart.

Komainu is a digital asset custodian for institutional investors. The firm was founded by CoinShares in partnership with Japanese investment bank, Nomura, and the digital asset security company, Ledger. Based in Jersey, Komainu provides a single interface app-based solution for institutional digital asset holders. The solution supports a range of assets, is insured, and is compliant with regulations.

The Komainu digital asset custody business will serve as the custodian for all digital assets held by CoinShares and the XBT Provider family of exchange traded products (ETPs). Komainu’s proprietary technology should provide CoinShares investors with a degree of assurance that their assets will be secure.

Townsend Lansing, Head of Product at CoinShares said that the digital asset space is fast evolving with the safe custody of digital assets an ongoing and critical concern. “We periodically review our third-party relationships to ensure our products are backed by the best infrastructure and expertise available,” said Lansing. “We are excited to work with Komainu, and as the XBT Provider platform marks its 5th year of operation, we believe their unique offering and deep understanding of digital asset markets will best serve our investors’ interests going forward.”

The news follows last week’s announcement that CoinShares has joined the Liquid Network. Liquid is a Bitcoin sidechain-based settlement network. Created by Blockstream, Liquid provides asset issuance capabilities, fast settlement times, and transaction confidentiality for traders and exchanges.

CoinShares will integrate Liquid to enable digital asset trading between Liquid-enabled exchanges. Potential benefits to clients include faster and more efficient transactions. CoinShares will also provide input on the development of new network features to keep pace with demands in the digital asset market.