Komainu, a crypto custodian provider backed by Nomura Group, has completed its first acquisition by purchasing the Singaporean custodian Propine Holdings.

According to an Oct. 22 report, the acquisition by the Japanese Nomura-backed crypto custodian firm Komainu is still awaiting approval from the Monetary Authority of Singapore.

Propine Holdings has been operating as a digital asset custodian in Singapore since 2018. In November 2019, Propine was granted a conditional license from the Monetary Authority of Singapore after co-creating the MAS FinTech Regulatory Sandbox.

Komainu’s Strategic Expansion

Komainu co-Chief Executive Officer Paul Frost-Smith mentioned in an interview that this acquisition will likely be the first of several more to come. However, he did not disclose the exact amount paid by Komainu for Propine. Frost-Smith also indicated that Komainu expects to close a funding round in the next few weeks.

Impact on Asian Market Presence

Frost-Smith emphasized that the acquisition of Propine is a crucial step in Komainu’s expansion into the Asian market. This move will provide Komainu with a Capital Market Services license from Singapore, which is essential for their business growth. Furthermore, Komainu plans to apply for a Major Payment Institution license in Singapore, allowing the firm to offer a wider range of services in the region.

“Singapore is an integral part of Komainu’s future business endeavors as demand from private banks for advisory services and collateral management services for hedge funds and asset managers is on the rise.”

Future Plans and Focus Areas

Komainu aims to extend its operations into Singapore, Hong Kong, and other economies with established regulations for digital assets. However, Frost-Smith noted that Japan will remain the primary focus for Komainu’s operations, given that it is Nomura’s home market.

Komainu marked Nomura’s first significant venture into the crypto space in 2020, offering Bitcoin and crypto custody services for institutional investors. Initially, Komainu provided custody for Bitcoin, Ethereum, and other cryptocurrencies with significant market capitalization.

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