Japanese Banking Giant Nomura Partners With Ledger and CoinShares To Launch Bitcoin Custody

Nomura Holdings, one of Japan’s largest financial companies, has launched a Bitcoin custodial service for traditional investors through a joint venture with hardware wallet provider Ledger and investment company CoinShares.

Digital Asset Custody Solution For Institutions

The partners have been working together to develop the digital asset custodian dubbed Komainu since 2018, and it was officially launched on Wednesday. The venture describes itself as the first regulated digital assets custody solution built by institutions for institutions.

Per the report, Komainu is regulated by the Jersey Financial Services Commission and will offer its services to institutional clients like banks who want to gain exposure to the digital asset market.

The firms claim that Komainu can integrate with the systems of financial institutions, and digital assets and clients will only be accepted if they pass through anti-money laundering and provenance checks.

CoinShares Co-Founder and CEO Jean-Marie Mognett will lead venture going forward. Komainu’s executive team also includes experts from Nomura and Ledger as well as professionals with experiences in financial services, Cyber Intelligence, and more.

“The growth and maturity of the digital asset industry highlight the true potential for decentralized finance. Komainu bridges the gap by bringing financial expertise and capabilities for institutional clients to feel confident their assets are in safe hands,” said Mognett.

Increased Institutional Interest in Digital Assets

Pascal Gauthier, CEO of Ledger, noted that traditional investors are looking for both compliance and security when dealing with digital assets custody.

“With cryptocurrencies more prone to vulnerabilities, institutions’ digital assets are weaponized against them without the proper security infrastructure in place. Through our combined experience, we have developed a sophisticated financial and security solution that will be the key institutional partner,” he added.

CoinShares’ chairman Daniel Masters opined that traditional investors are becoming more open to the different benefits of digital assets.

“The case for digital assets as part of an investment portfolio, both as a source of diversification and as a countermeasure to rampant money supply expansion, is becoming clearer to institutions,” he said.

Earlier this month, ICE-backed Bitcoin derivatives trading and custody platform Bakkt, partnered with investment management company Galaxy Digital to launch a digital assets custody venture for institutional clients.

Featured image courtesy of Asia Nikkei