As a seasoned analyst with over two decades of experience in the financial industry, I find this acquisition by Komainu to be a strategic and bold move that could potentially reshape the crypto custodian landscape in Asia. Having worked extensively in both Japan and Singapore, I am well aware of the regulatory nuances and competitive dynamics in each market.
Crypto custodian service provider Komainu, supported by the Nomura Group, has made its initial acquisition by purchasing Singapore-based competitor Propine Holdings.
As a researcher, I’ve been following developments in the crypto sphere closely, and I recently came across some intriguing news. It appears that the acquisition of Propine by Komainu, a cryptocurrency custodian firm backed by Nomura, is currently under review by the Monetary Authority of Singapore. The final approval is yet to be secured.
As an analyst, I’ve been tracking Propine Holdings, a digital asset custodian based in Singapore since its establishment in 2018. In a significant milestone, Propine was bestowed with a conditional license from the Monetary Authority of Singapore (MAS) in November 2019, following our collaborative effort in creating MAS’ FinTech Regulatory Sandbox.
In a conversation with Bloomberg, Paul Frost-Smith, one of the co-CEOs at Komainu, hinted that the acquisition of Propine is just the beginning, suggesting that more such deals are on the horizon. However, he chose not to reveal the specific purchase price for Propine.
Frost-Smith added that he expects to close a funding round in the next few weeks for Komainu.
According to Frost-Smith, acquiring Propine represents the initial move for Komainu’s growth in various regions across Asia. He refers to this acquisition as a crucial component in establishing their business, as it grants Komainu a Capital Market Services license from Singapore upon purchasing Propine.
Moreover, Frost-Smith mentioned that Komainu intends to seek a Major Payment Institution license in Singapore. This means they aim to operate as a custody provider within Singapore. He considers Singapore crucial for Komainu’s future business ventures due to increasing demand from private banks in Singapore for advisory services. Similarly, there is growing interest in collateral management services among hedge funds and other asset managers based in Singapore.
Komainu intends to expand its business to countries like Singapore and Hong Kong, as well as others with rules regarding digital assets. However, Frost-Smith clarified that Japan would continue to be the main focus for Komainu’s operations, given that it is Nomura’s home market.
Back in 2020, Komainu marked Nomura’s initial venture into the cryptocurrency realm. At that time, it started providing Bitcoin (BTC) and secure storage solutions for institutional investors dealing with digital assets. To begin with, Komainu supported Bitcoin, Ethereum (ETH), and other major cryptocurrencies.
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2024-10-22 10:04