17.10.2024 / Press Releases / News
Komainu and Hidden Road to Support BlackRock USD Institutional Digital Liquidity fund (BUIDL) as Collateral in Triparty Agreements
Komainu, a regulated digital asset custody service provider built by institutions for institutions, and Hidden Road, the global credit network for institutions, today announced the addition of BlackRock USD Institutional Digital Liquidity Fund (“BUIDL”) as supported collateral under their triparty collateral management agreements.
Now, via tripartite agreements, Komainu clients, who are whitelisted eligible investors in BUIDL, will be able to trade via Hidden Road, using BUIDL as collateral, which will remain in custody with Komainu. This arrangement allows institutions to utilise their BUIDL holdings while maintaining the security of their assets within Komainu's regulated and segregated custody.
Hidden Road was the first prime broker to join the Komainu Connect platform, enabling the use of digital assets in collateralisation scenarios whilst assets remain in secure, regulated and segregated custody. Through this partnership, institutional clients can access prime brokerage services while reducing counterparty risk.
Komainu recently announced custody support for BUIDL. BUIDL is a fund sponsored by BlackRock and exclusively available through Securitize Markets, LLC. The fund is designed to offer institutional investors exposure to US dollar yields through tokenization.
Launched in April 2023, Komainu Connect reduces client counterparty risk by removing the need to store collateral with trading and liquidity counterparties, instead offering the ability to keep assets in safe custody whilst they are being utilised.
“We are continuously expanding our token support to meet institutional demand and to allow clients to earn passive yield on assets held in custody with Komainu,” said Paul Frost-Smith, Co-CEO at Komainu. “Yield-bearing short-term treasury funds, including BUIDL, are great collateral assets for Komainu Connect, our bank-grade collateral management offering. We are delighted to be working with Hidden Road to support clients in maximising the capital efficiency of their custodied assets and increasing the efficiency of the digital asset markets more generally.”
Michael Higgins, Global Head of Business Development at Hidden Road, commented, “The addition of BUIDL as supported collateral in our triparty agreements with Komainu is a significant milestone in our mission to provide institutional investors with innovative and efficient access to markets across asset classes. By leveraging Komainu's secure custody and Hidden Road's multi-asset prime brokerage services, our clients can now utilise their BUIDL holdings to access credit and liquidity in digital asset markets.”
Komainu was established in 2018 to provide institutions with a range of secure and compliant custody and related services to access the digital asset markets. Komainu currently custodies assets for exchanges, financial institutions, asset managers, corporations, and government agencies.
Carlos Domingo, Co-founder and CEO at Securitize, remarked, “We’re developing an ecosystem that brings the advantages of tokenization to life. Real-world asset tokenization is scaling quickly, and we’re excited that Hidden Road and Komainu are adding BUIDL as supported collateral via their tripartite agreement to showcase the advantages of using tokenized short-term treasury funds for collateral.”
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About Komainu
Komainu is a regulated digital asset custodian and service provider, headquartered in Jersey, with offices in London, Dubai, and Singapore. Built by institutions for institutions, Komainu offers multi-asset support and regulatory oversight, merging expertise from traditional financial services with leading security standards for the next generation of institutional digital asset servicing and provides a gateway for institutions to access the digital asset ecosystem.
Komainu (Jersey) Limited is regulated by the Jersey Financial Services Commission (JFSC). Komainu MEA FZE is regulated by the Dubai Virtual Assets Regulatory Authority (VARA). Komainu UK is Registered with the UK Financial Conduct Authority (FCA). Komainu Europe S.r.l has an OAM registration in Italy. For more information, visit https://www.komainu.com.Media Contact:
About Hidden Road
Hidden Road Partners is the global credit network for institutions, enabling seamless access to traditional and digital markets. Conflict-free and built on a modern technology stack, we remove complexity and cost in prime brokerage, clearing and financing. For more information, please email info@hiddenroad.com.
About Securitize
Securitize, the leader in tokenizing real-world assets, is bringing the world on-chain through tokenized funds in partnership with top-tier asset managers, such as BlackRock, Hamilton Lane, KKR and others. Securitize, through its subsidiaries, is a SEC-registered broker dealer and digital transfer agent, and operator of a SEC-regulated Alternative Trading System (ATS). For more information, please visit www.securitize.io.
Contact: Press@securitize.io
Securitize Disclosures
Securities are offered through Securitize Markets, LLC, (“Securitize Markets”) a registered broker-dealer and member FINRA/SIPC. Securitize Markets, LLC, and Securitize Capital, an Exempt Reporting Adviser, are not involved in Real-World Asset (RWA) tokenization, a service provided by Securitize.
Assets such as digital assets or tokens using blockchain, are speculative, involve a high degree of risk, are generally illiquid, may have no value, have limited regulatory certainty, are subject to potential market manipulation risks and may expose investors to loss of principal.
Securitize, Inc. (Securitize) is a Delaware corporation. Securitize is a technology provider which, together with its affiliates, maintains an end-to-end web-based platform used by issuers for issuing securities, specifically including digital asset securities. Securitize is not a registered broker-dealer.
Securitize, LLC is a transfer agent registered with the U.S. Securities and Exchange Commission.
Securitize Markets also operates Securitize Markets ATS, an alternative trading system.
Securitize Capital, LLC is an exempt reporting adviser filed with the State of Florida.
