London-based digital asset custody provider Koine announced securing in-principle approval (IPA) to provide custody in relation to Virtual Assets in the Abu Dhabi Global Market (ADGM), granted by the Financial Services Regulatory Authority (FSRA).
The increasing demand for institutional investment in virtual assets and the emerging rise of institutional investors in digital securities, Koine will provide regulated services not only to the company’s customers but a wider digital asset community.
The pos-trade solution Koine offers provides secure and easy to use institutional custody, settlement and related cash management service for the new generation of digitalized assets. Koine’s services eliminate counter-party, credit and insolvency risks in a framework of compliant and regulated environment, allowing institutional capital investments in digital assets without any change to conventional fund mandates.
Koine’s design preserves clients assets intact and available for use in case of potential failures of an exchange or venue. The platform allows assets and fiat currency to be moved in sub-second timeframes between market venues allowing for settlement in real-time utilizing Delivery vs. Payment (DvP) at fixed prices. The security risk is reduced from the standard post-trade process with the removal of human intervention.
The digital asset platform ensures that the average value of funds held in hot wallets is nil. Value at Risk is properly insured. Koine is also suitable for Market Makers and Algorithmic Traders.
Hugh L. Hughes, ex-CEO of Société Générale Securities and co-founder of Fixnetix, the market data and electronic trading platform later bought by DXC Technology, is leading the Koine team as CEO and Chairman.
Hugh Hughes, Chairman and CEO at Koine, commented:
The Koine model has always been one built upon the fundamental importance of good governance. This is the only way to attract institutional capital into the digital asset market, unlocking the huge, industry wide benefits that come with it. Delivering best practice and regulatory compliance for our institutional clients is something we take very seriously. Not only does this latest In-Principal Approval from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) further strengthen Koine’s global footprint, but also serves to reaffirm our belief in robust regulation.
We look forward to future constructive dialogue with regulators and institutions in the UAE and around the world, in line with our focus of putting the client’s needs for regulatory oversight at front of mind. Following this further vote of confidence in our model, we are sure this will give our clients even greater reassurance when looking to move into one of the most vibrant sectors of the financial ecosystem.
Dominic Longman, CEO, Koine, Middle East, stated:
I am extremely excited to be returning to Abu Dhabi with Koine, to build out this key financial infrastructure that can support not just those first virtual assets but all asset classes as they move to tokenised/blockchain technology. Koine begins to answer the question “How to mitigate the geo-political risks of the current financial infrastructure” and allows for greater control and visibility of assets by their true owners and we look forward to playing a role in Abu Dhabi’s great vision for 2030.
Abdulla Al Mansoori, Chairman Designate, Koine, Middle East said:
The in-principle approval (IPA) from the Abu Dhabi Global Market is an important milestone in our efforts to be a leading enabler of the digitally-enabled market infrastructure and rapidly growing digital transformation process in the region. Our capital market expertise, innovation and deep understanding of customer needs places us in a unique position to be the premier provider of custody and settlement services for the institutional market participants seeking to take advantage of the growing digital assets revolution.
Last week, Koine announced teaming with digital asset exchange Bitfinex for the launch a post-trade service to enable institutional investors to mitigate counterparty risk and utilize private keys in the clearing and settlement of cryptocurrencies.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
