Nomura Launches Collaboration to Create ‘Digital Asset Custody Solution’

Japanese financial holdings company Nomura, crypto wallet manufacturer Ledger, and management consulting firm Global Advisors have announced a collaboration to form ‘Komainu,’ a secure digital asset custody solution.

The initiative is specifically targeted towards creating digital asset storage options for institutional investors and crypto firms who have large storage needs; Komainu is also attempting to address the need for storage solutions compliant with regulations.

BREAKING 1/2: Excited to announce the launch of a partnership between @LedgerHQ, @Nomura and @GABIjersey to enable institutional investment in digital assets including Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term. Together we’ll address security and other challenges facing investors https://t.co/I1bcsOX3Qg

— Ledger (@LedgerHQ) May 15, 2018

An announcement by all three parties involved reads that Komainu “will provide infrastructure and an operational framework to the wider investment management industry and enable investors to embed or implement a consistent set of best practice standards within their businesses.”

Crypto Custody Solutions Become More Popular

Nomura’s Global Chief Digital Officer, Jez Mohideen, believes that a good crypto custody solution could facilitate the entry of new institutional investors into the space: “global investment managers have long been held back from full participation in digital asset markets, limited by operational and regulatory risk.” Of course, he also believes that Komainu is the firm for the job.

As cryptocurrency and the Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term industry as a whole continue to veer toward the corporate world, offerings of custodial services for digital assets are becoming more popular. Coinbase launched ‘Coinbase Custody’ earlier this year; State Street, the world’s second-largest custody bank, announced that it was considering launching a crypto custody service in January.

Therefore, the space is not without competition. However, Ledger’s well-established reputation as a source of reliable crypto storage technology combined with the investment-savvy ways of Nomura and Global Advisors could make Komainu a formidable new player in the market.

Co-Principal of Global Advisors Jean-Marie Mognetti said that her company has been searching for a “robust” custody solution since its first digital asset trade in 2012. “This partnership is a progressive stepping stone towards the creation of the necessary prerequisites for further growth within the digital asset ecosystem. This will open new and exciting opportunities to global participants and contribute to move digital asset closer to mainstream offerings.”