Outside Source
Komainu, a crypto custodian provider backed by Nomura Group, completed their first acquisition by buying Singaporean rival custodian Propine Holdings.
According to an Oct. 22 Bloomberg report, Japanese Nomura-backed crypto custodian firm Komainu’s Propine purchase is still awaiting approval from the Monetary Authority of Singapore.
Propine Holdings has been operating as a digital asset custodian in Singapore since 2018. In November 2019, Propine was granted a conditional license from the Monetary Authority of Singapore after co-creating MAS’ FinTech Regulatory Sandbox.
Komainu co-Chief Executive Officer Paul Frost-Smith said in an interview with Bloomberg that Komainu’s acquisition of Propine will likely be the first of several more to come. Though, he refused to disclose the exact amount paid by Komainu to buy out Propine.
Frost-Smith added that he expects to close a funding round in the next few weeks for Komainu.
Frost-Smith stated that the Propine acquisition marks the first step towards Komainu’s expansion into other parts of the Asian region. He calls it “an absolutely key factor in building” the business, as buying Propine will provide Komainu a Capital Market Services license from Singapore.
In addition, Frost-Smith stated that Komainu will also apply for a Major Payment Institution license in Singapore, enabling the custody provider to operate in Singapore. He views Singapore as an integral part of Komainu’s future business endeavors as demand from private banks in Singapore for advisory services is on the rise. The same can be said about collateral management services for hedge funds and other asset managers.
Komainu plans to branch out its business into Singapore, Hong Kong and other economies that have set up regulations involving digital assets. Though, Frost-Smith added that Japan will remain the primary focus for Komainu operations as it is Nomura’s home market.
Komainu became Nomura’s first dip into the crypto space back in 2020, when it offered Bitcoin (BTC) and crypto custody services for institutional investors. Initially, Komainu offered Bitcoin, Ethereum (ETH), and other cryptocurrencies with significant market capitalization.
This article first appeared at crypto.news
