Komainu CEO Paul Frost-Smith Confirms Treasury Strategy for $75M Bitcoin Investment
Komainu, a regulated digital asset custodian backed by Laser Digital, a Nomura company, has secured $75 million in strategic investment from Blockstream Capital Partners (Blockstream), subject to relevant regulatory approvals. This investment, uniquely funded in Bitcoin, is set to transform Komainu’s operational capabilities and position it as a leader in the institutional adoption of cryptocurrency.
Bitcoin-Funded Investment: A Growing Trend
The investment highlights a new trend in the crypto industry: businesses raising funds in Bitcoin and retaining it in their treasuries. Komainu plans to establish a treasury function to manage its Bitcoin holdings.
Paul Frost-Smith, Co-CEO of Komainu, explained to Unlock Blockchain:
“We expect this to be an increasingly common trend among crypto-focused businesses. Komainu will run a treasury function around its own Bitcoin positions going forward, taking into account yield enhancement opportunities as well as hedging as necessary. Bitcoin may be liquidated and repurchased as part of this operation to meet corporate requirements, but the intention is to hold Bitcoin on the balance sheet going forward.”
Accelerating Growth with Blockstream’s Technology
Komainu plans to leverage Blockstream’s advanced technologies, including the Liquid Network, AMP platform, and enterprise HSM wallet, to enhance its offerings. The Liquid Network will cut settlement times for Komainu Connect, its off-exchange margining and settlement solution, from hours to minutes. AMP technology will automate support for tokenization and enable trustless trading solutions.
Paul Frost-Smith emphasized the impact of this partnership, telling Unlock Blockchain:
“This funding will allow us to accelerate our ambitious growth plans at a time of unprecedented interest from institutions in digital assets, and Bitcoin approaching its all-time high (ATH). With access to Blockstream’s cutting-edge technology, Komainu is uniquely positioned to build wide-ranging, low-latency offerings to maximize efficiencies and enhance client services in collateral management and tokenization. By aligning with one of the visionary companies in the Bitcoin ecosystem, and Adam Back joining our Board, Komainu is now uniquely positioned to become the go-to provider of all services related to Bitcoin for institutional clients.”
A Partnership for Institutional Adoption
This investment marks a milestone in institutional adoption of Bitcoin-related technologies. Adam Back, CEO of Blockstream Corp, highlighted the significance of this collaboration:
“We are delighted that Komainu is adopting Blockstream’s various technology streams to enhance its institutional service offering. This is testament to the fundamental veracity of Bitcoin-related technologies and applications and marks the first time that these have entered the institutional arena. I am confident this will be the first of many such use cases as the institutional community wakes up to the power of the Lightning and Liquid Networks.”
Expanding Operations in the UAE and Beyond
The UAE remains a key market for Komainu, as it was the first custodian to be regulated by the Virtual Assets Regulatory Authority (VARA) in Dubai. Frost-Smith reiterated the importance of the region: “Komainu was the first custodian to be regulated by VARA in Dubai, and this continues to be an important hub for us. We are continuously looking at other regulatory regimes and, if they provide a strategic growth opportunity, will certainly consider them.”
Shaping the Future of Institutional Crypto Adoption
The $75 million investment underscores Komainu’s commitment to bridging traditional finance and digital assets. By leveraging Bitcoin and integrating Blockstream’s technologies, Komainu is positioning itself as a trailblazer in institutional-grade digital asset services, setting a precedent for the industry to follow.
PeterPaul Pardi, Director at Blockstream Corp, emphasized: “This partnership with Komainu, backed by Nomura’s Laser Digital, is a landmark moment for the adoption of Bitcoin-related technology by a bank-built, regulated financial services business. It showcases the institutional use-cases for Bitcoin as demand reaches new highs.“
