Bitfinex has announced plans to integrate Komainu Connect, a regulated digital asset custodian. This collaboration aims to enable institutions and investors to trade on Bitfinex's deep liquidity platform while ensuring their assets are held in a regulated custody environment.
Supported by Ledger Tradelink
According to Bitfinex, this partnership is made possible by Ledger Enterprise's off-exchange trading and settlement technology, Ledger Tradelink. This technology will allow Bitfinex's institutional customers to trade without frequently moving assets on-chain.
By integrating with Komainu Connect, Bitfinex has promised users access to the liquid crypto markets while their assets remain stored with Komainu, a regulated custodian. According to the company, this setup minimizes the need for frequent on-chain transfers, which can often be cumbersome and costly.
Commenting about the collaboration, Paolo Ardoino, Bitfinex's CTO, said: “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.”
This collaboration is supported by Ledger Tradelink, a technology that facilitates off-exchange trading and settlement. Traders with assets on Komainu Connect and a verified Bitfinex account can allocate a portion of their custody-held assets for trading.
Once a lock is initiated at Komainu, the system will notify Bitfinex through an API connection, and the trader will receive a balance equivalent to the locked amount, ready for trading on Bitfinex.
Bitfinex's Other Collaborations
This integration is reportedly part of Bitfinex's broader strategy to offer remote custodian solutions, building on collaborations with other custodian partners focusing on institutional clients.
Early this year, Bitfinex collaborated with Synonym to launch a feature that enhances Lightning Network transactions. This partnership aims to eliminate challenges associated with establishing Lightning channels for deposits, withdrawals, and payments.
Besides that, Bitfinex Securities raised $5.2 million worth of USDT through its tokenized bond ALT2612 last year. ALTERNATIVE, a Luxembourg-based securitization fund under Mikro Kapital, enabled this fundraising.
