KEY TAKEAWAYS
- Bybit partners with Komainu to enhance its collateral management platform, Komainu Connect.
- The partnership allows institutional clients to trade 24/7 while keeping assets securely under custody.
- Komainu Connect integrates with exchanges to provide fast, seamless connections and 100% collateral mirroring.
- This collaboration aims to improve security and efficiency for institutional investors.
Bybit, recognized as the world’s second-largest cryptocurrency exchange by trading volume, has announced a strategic partnership with Komainu, a regulated digital asset services provider and custodian. This collaboration aims to enhance Bybit’s collateral management platform, Komainu Connect, as detailed here.
The partnership enables institutional clients to engage in round-the-clock trading while ensuring their assets remain securely stored under custody. By allowing assets to be held with a regulated third-party custodian and simultaneously tradable on the exchange, clients can better manage their counterparty risk. The process includes regular, automated off-exchange settlements, eliminating the need for pre-funding on the exchange.
Enhanced Security and Efficiency for Institutional Investors
Komainu is expanding its Komainu Connect platform by integrating directly with exchanges, lenders, and brokers. This integration utilizes advanced technologies to establish fast, seamless connections, providing access to a broad network of market counterparties.
Key benefits of this partnership include 100% collateral mirroring, where all delegated assets in collateral wallets are mirrored on the exchange. The off-exchange settlement process eliminates the need to pre-fund on the exchange, enhancing transparency. All assets are held in on-chain, bankruptcy-remote segregated wallets, offering maximum transparency and legal clarity. Clients also benefit from a holistic view of custody and collateral wallets, with dedicated, client-by-client wallets.
Paul Frost Smith, Co-CEO at Komainu, expressed that the partnership with Bybit strengthens their roster of trusted exchanges and underscores their commitment to building a safer, more efficient trading environment for active investors. Yoyee Wang, Head of Business to Business Unit at Bybit, highlighted that the partnership is a step towards ensuring trust and security for clients, offering secure, regulated custody alongside the flexibility and scale expected by institutional investors.
Why This Matters: Impact, Industry Trends & Expert Insights
Bybit’s partnership with Komainu aims to enhance secure trading for institutional clients by integrating custody services with trading operations, allowing for 24/7 trading of segregated assets.
A recent B2Broker report highlights a shift in institutional crypto trading towards strategic, regulated allocation, emphasizing portfolio diversification and risk management. This trend is evident in Bybit’s collaboration with Komainu, which enhances security and operational efficiency for institutional investors.
Recent market analysis suggests that Bybit’s integration with Komainu boosts institutional confidence in secure trading infrastructure, especially following security challenges faced earlier in 2025. This supports Bybit’s strategic move to attract institutional clients by offering robust custody solutions and off-exchange settlement networks.
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