A fund manager can’t simply say to its investors, “sorry, we lost $100 million because our account was hacked”. This is not the case with dollar-denominated products at brokerage houses or banks, which are their reference point and everyday life. The security of deposits and capital is often guaranteed by the state, insurance companies or the bank itself.
The same must apply to Bitcoin and cryptocurrency. The risk of being hacked must be eliminated, which requires both innovation and investment in good custody solutions.
This is perhaps why the investment bank Nomura, has invested in Komainu. Komainu is a new custody solution for the largest institutions and banks. Nomura has joined the fund company CoinShares as a partner in the venture. The new company will operate from Jersey, under UK patronage, and promote itself to qualified institutions worldwide. In other words, they compete with Bakkt and Galaxy Digital who develop a similar solution.
Daniel Master, CoinShares Chairman, says:
“The idea that cryptocurrency and Bitcoin have a diversification effect and a counterpart to massive cash printing has become clearer to financial institutions. The very foundation for such institutions to participate in this market are robust custody solutions. Komainu combines technology understanding and confidence to deliver a safe product that gives customers a good night’s sleep.”