Komainu, the cryptocurrency custody company backed by Nomura, Ledger, and CoinShares, has achieved a significant milestone by obtaining an operating license from Dubai's Virtual Asset Regulatory Authority (VARA). This license empowers Komainu to offer its complete spectrum of custody solutions, including institutional staking and collateral management through its Komainu Connect platform, to clients within the emirate.
The company's statement highlighted that its Komainu Connect platform enables clients to utilize their digital assets for collateralization purposes while maintaining them within segregated custody. This arrangement ensures that the custody status is verifiable on the blockchain, adding an extra layer of transparency and security.
Dubai has been actively working to attract cryptocurrency-related businesses to its jurisdiction. In a groundbreaking move, the United Arab Emirates (UAE) introduced VARA in March 2022, establishing it as the world's pioneer independent regulatory body overseeing cryptocurrencies. This development has paved the way for increased legitimacy and oversight within the crypto industry. Notably, Laser Digital, a digital asset subsidiary of financial services giant Nomura, secured its own operating license from VARA earlier in the same month. Moreover, Binance, a global leader among cryptocurrency exchanges, also obtained a license to operate within Dubai in July.
Sebastian Widmann, Komainu's Head of Strategy, expressed optimism about the newly acquired license. He acknowledged the flourishing environment of asset growth, attributed to fund formation and the launch of new exchanges, and emphasized the ample opportunities for business expansion in Dubai.
Komainu made its debut in June 2020, positioning itself as a prominent player in the custody sector. Its offerings extend to a diverse array of clients, ranging from exchanges and financial institutions to asset managers, corporations, and government agencies. The company's association with key industry players like Nomura, Ledger, and CoinShares bolsters its credibility and market presence.
As the crypto landscape continues to evolve, the significance of robust custody solutions becomes increasingly apparent. Komainu's ability to provide secure and compliant custody services aligns with the growing demand for dependable infrastructure in the digital asset realm. With its new Dubai license in hand, Komainu is poised to tap into the dynamic crypto market of the emirate, contributing to the ongoing narrative of crypto adoption and integration into the mainstream financial landscape.
