Komainu, the cryptocurrency custodian backed by Nomura Holdings, is buying Singaporean rival Propine Holdings in its first acquisition.
The takeover of Propine, which is pending approval from Monetary Authority of Singapore, is likely the first of several acquisitions, Komainu co-CEO Paul Frost-Smith said in an interview. He declined to say how much Komainu is paying for Propine.
Buying Propine will yield Komainu a Capital Market Services license in Singapore, Frost-Smith said, adding that it’s "an absolutely key factor in building" the business. Komainu is stepping up an expansion in Asia, where economies from Singapore to Hong Kong and Japan have established regulatory regimes for digital assets in the past few years.
The acquisition "is setting ourselves up for the future with a licensed platform that we can grow," Frost-Smith said.
Komainu will also apply for a so-called Major Payment Institution license in Singapore, which will allow the firm to fully offer payment services, Frost-Smith said. The company is seeing rising demand from private banks in Singapore for advisory services, and from hedge funds and other asset managers for collateral management services, he said.
Japan is a key focus area for Komainu and will serve as a major hub given that it is Nomura’s home market, according to Frost-Smith. He added that he expects to close a funding round in the next few weeks, declining to say how much Komainu will raise.
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