Nasdaq has selected Komainu as a Core Custodian for its suite of Crypto Indices, making the renowned crypto custodian a preferred choice for ETP issuers.
Created in 2018 as a joint venture between Japanese custodian Nomura, blockchain experts Ledger, and digital asset investment manager CoinShares, Komainu has reached a new milestone with Nasdaq.
How Komainu meets Nasdaq’s Core Custodian requirements
Nasdaq’s Core Custodian requirements are designed to ensure the security and integrity of digital assets. Key criteria include:
- Bankruptcy remoteness: Legal protection and segregation of client assets in the event of custodian insolvency
- Regulatory compliance: Licensing by reputable regulatory bodies
- Segregation: Advanced security practices for private key generation and segregated storage
- Cold storage: Offline storage of private keys with multi-layered security measures
- Risk management: Comprehensive frameworks for operational and custody risk mitigation
- Asset recovery: Robust disaster recovery and operational continuity plans
- Auditing: Regular third-party audits of operational and security processes
- Insurance protection: Comprehensive coverage against various risks
Paul Frost-Smith, co-CEO, added: “Komainu’s appointment as a Core Nasdaq Custodian reaffirms our position as a leading digital asset custodian. From inception, we’ve tailored our solutions to meet the stringent requirements of major financial institutions, providing them with a secure and reliable gateway to the digital asset ecosystem. Our bank-grade security measures, governance, and operational standards, now further validated by Nasdaq, have made us the preferred choice for ETP issuers like CoinShares and ETC Group.”
Komainu is regulated by the Jersey Financial Services Commission (JFSC), the Dubai Virtual Assets Regulatory Authority (VARA), and holds an MLR registration with the UK Financial Conduct Authority (FCA) and an OAM registration in Italy.
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Fireblocks recently announced that Komainu is among the first five partners of its Fireblocks Global Custodian Partner Program, which provides a secure and seamless way to connect to licensed custodians across the globe. Other partners include CloudTech Group, Zodia Custody, Zerocap, and Rakkar.
Komainu appointed Paul Frost Smith as co-CEO
In May, Komainu announced the appointment of Paul Frost Smith as co-CEO, working alongside Robert Johnson who has been serving as interim CEO and has now been appointed as co-CEO on a permanent basis.
The Komainu board of directors made the strategic decision to create a co-CEO role due to the highly complementary nature of each candidate’s skill set. With dedicated areas of ownership, the co-CEO structure will provide the breadth and focus required to capture the opportunity presented by the rapid growth in the digital assets market.
Mr. Frost Smith’s career spans over 30 years in international financial markets, including recent experience in scaling digital asset businesses. In his most recent role, Frost Smith was co-founder and CEO of Corinthian, a leading digital asset investment management and advisory firm. His previous multi-strategy hedge fund, Castlegrove, was acquired by Millennium Management, LLC in 2008. In his role as co-CEO, he will focus on business strategy, development, and expansion as well as providing innovative and tailor-made client solutions.
Robert Johnson joined Komainu as Chief Technology Officer (CTO) in October 2023 and has been interim CEO since February. Rob has extensive financial services experience having previously served as CTO and Partner at Coremont, as well as 18 years on the trading floor at MUFG Securities. In his role as co-CEO, Rob will continue to spearhead the development of Komainu’s institutional-grade digital asset infrastructure and drive innovation and excellence across the full tech offering.
