Komainu secures $75M investment from Blockstream, funded in bitcoin

Crypto custody firm Komainu, a joint venture between Nomura, Ledger, and CoinShares, raised $75 million in a strategic investment from Blockstream Capital Partners. The investment is unique as it is funded entirely in bitcoin.

Komainu plans to establish its own BTC treasury to manage the crypto provided by Blockstream. The funds will be used to accelerate Komainu’s growth initiatives and integrate Blockstream technologies into its operations.

Leveraging Blockstream’s Liquid Network, Komainu plans to upgrade its institutional services by reducing off-exchange margining and settlement times. The Liquid Network is a Bitcoin sidechain designed for faster and more secure asset transfers, which could improve efficiency in Komainu’s offerings.

Blockstream executives Adam Back, PeterPaul Pardi, and Nicolas Brand will join Komainu’s board of directors as part of the investment agreement. Adam Back, CEO and co-founder of Blockstream said in a press release, “This marks the first time these technologies are being integrated at an institutional level, highlighting their reliability and potential.”

Komainu was first announced in 2018 to overcome barriers to institutional investment in digital assets through a compliant platform powered by a bespoke environment created by Ledger, creators of the Nano S wallet. The venture provides infrastructure and an operational framework to the wider investment management industry and enables investors to embed a set of best practice standards within their businesses.

In addition to Nomura’s vast experience, the parent company behind CoinShares, Global Advisors, has a wealth of experience in commodity trading, hedge funds, FX trading and exchange-traded products.

Nomura is Japan’s biggest brokerage and investment bank with assets totaling over $500 billion. The news comes at a time when both start-ups and major financial institutions are rushing to get new crypto tools to Main Street investors.

Back in 2020, Nomura has gone live with its own cryptocurrency custody service for institutions in partnership with blockchain security firm Ledger and the fund manager CoinShares. The joint venture, named Komainu, secured regulatory approvals from the Jersey Financial Services Commission.