Komainu Expands Collateral Network with LTP Prime Brokerage Partnership
Komainu, the regulated digital asset custodian backed by Laser Digital and Blockstream, has expanded its collateral management platform, Komainu Connect, through a new partnership with LTP, a global prime broker serving institutional digital asset markets. The addition of LTP reinforces Komainu’s mission to offer institutional-grade custody and risk management answers while allowing clients to leverage digital assets more efficiently.
Launched in April 2023, Komainu Connect addresses one of the key structural risks in digital asset markets: the need for institutions to park collateral with trading venues or liquidity providers. Instead, the service allows clients to keep assets in secure, regulated custody while still deploying them as collateral. This model reduces counterparty risk and aligns digital assets more closely with the secureguards expected in traditional finance. By bringing LTP into the fold, Komainu is deepening its ecosystem of partners and increasing institutional access to capital efficiency.
“LTP is a significant and strategic addition to our expanding collateral management network, representing another step forward in delivering much-needed, bank-grade infrastructure to the digital asset marketplace,” said Paul Frost Smith, Co-CEO at Komainu. “As we expand the range of venues our clients can access, whilst holding their assets in secure custody, the ability to leverage those assets, as well as cross-margin across portfolios of crypto and Trad-Fi assets, is increasingly significant.”
How Does the Partnership Enhance Market Infrastructure?
Digital prime brokers like LTP play a pivotal role in bridging the gap between institutional trading practices and emerging crypto markets. By joining Komainu Connect, LTP extends the range of workflows that institutional investors can deploy securely. The partnership will initially support collateral deployment on OKX, one of the largest global platforms, with future expansion expected to include additional venues. This creates a pathway for institutions to trade across both crypto and traditional markets without compromising asset securety.
LTP’s model applies established financial standards to blockchain-based markets. The firm’s prime brokerage services span trade execution, clearing, settlement, custody, and financing, alongside regulated OTC block trading and compliant on/off-ramp answers. By integrating with Komainu’s custody network, LTP ensures client assets remain segregated and secure, even while being deployed efficiently for trading activities.
“At LTP, we are building the clearing layer for institutional digital asset markets, where client assets remain secure and segregated while collateral can be deployed with maximum efficiency,” said Jack Yang, Founder and CEO at LTP. “Partnering with Komainu strengthens this framework, enabling us to deliver secure, compliant, and scalable workflows that protect clients and enhance the prime brokerage experience.”
Takeaway
Why Is Custody Still the Cornerstone of Institutional Crypto?
Despite rapid adoption, custody remains one of the most sensitive issues for institutions. Unlike retail traders, institutions must comply with stringent regulatory and risk frameworks. The collapse of high-profile platforms in recent years has underscored the dangers of commingling client funds or relying on counterparties for asset storage. By keeping collateral in regulated custody rather than transferring it to trading partners, institutions can limit exposure to defaults or operational failures.
Komainu’s structure aligns with this need. The firm operates under multiple regulatory frameworks, including oversight by the Jersey Financial Services Commission and the . Its multi-jurisdictional approach allows clients to satisfy local compliance requirements while leveraging cross-border trading opportunities. This regulatory footprint has become increasingly significant as global watchdogs scrutinize digital asset markets more closely.
The integration of custody with prime brokerage is particularly significant for institutional portfolios that span both digital and traditional assets. By enabling cross-margining—using the identical pool of assets across multiple strategies—Komainu Connect provides efficiency gains that mirror traditional finance, but within a crypto-native framework.
Takeaway
What Does This Mean for Institutional Adoption?
The partnership signals an evolution in the toward models that mirror traditional finance. In traditional markets, prime brokers and custodians operate separately, but increasingly in crypto, partnerships between the two functions are emerging to close infrastructure gaps. By collaborating with LTP, Komainu is offering a combined answer that meets institutional expectations for securety, efficiency, and compliance.
For institutional investors, this partnership brings the promise of more scalable market access. With OKX as the first integrated venue, clients can test and expand collateral deployment strategies under a framework that feels familiar from traditional finance. As more venues are added, institutions will have the flexibility to diversify across platforms while maintaining unified custody.
This model could also attract more traditional institutions that have hesitated to enter crypto due to infrastructure concerns. By providing familiar workflows, segregated custody, and regulated oversight, the Komainu-LTP partnership could lower barriers to entry for banks, hedge funds, and asset managers exploring digital asset markets.
Takeaway
Looking Ahead: The Road to Wider Market Integration
As collateral management frameworks mature, the ability to cross-margin between could become a defining feature of institutional trading strategies. This convergence would allow firms to treat digital assets not as isolated holdings but as part of a broader portfolio strategy, increasing capital efficiency while maintaining robust risk controls.
Komainu’s growth trajectory suggests it will continue adding partners across prime brokerage, platforms, and liquidity providers. Each addition expands the reach of its collateral management ecosystem, creating network effects that benefit all participants. For LTP, the partnership offers greater market visibility and access to Komainu’s regulated custody base, strengthening its value proposition to institutional clients.
With regulators globally tightening standards on digital asset custody, firms that can offer secure, compliant, and scalable answers are likely to gain traction. The Komainu-LTP partnership reflects the industry’s shift toward infrastructure-first growth, prioritizing trust and transparency as prerequisites for broader institutional engagement.
