Komainu custody framework for FAB goes live

Digital asset custodian Komainu has completed transfers of a portfolio of digital assets into and out of custody for First Abu Dhabi Bank (FAB), putting the institutional custody framework the two firms have built into operation.

The firms said on Tuesday 3 November that the transfers settled instantly. They showed that FAB can move digital assets both into the custody environment and back out again, which is a basic requirement before a bank can run digital asset activity for clients. The size of the portfolio and the assets involved were not disclosed.

The framework connects Komainu’s regulated custody and connectivity services with the existing infrastructure of FAB Global Markets, the bank’s markets business. It has also been designed to support future financing, including lending backed by digital assets held in regulated custody.

Komainu said the main challenge for banks had shifted from deciding on a digital asset strategy to implementing one. It added that its infrastructure was designed to fit within the controls, workflows and governance banks already use.

“Completing these transfers with FAB shows that regulated custody can be integrated into a bank’s existing systems and run as part of its day-to-day operations,” said Paul Frost-Smith, group managing director of Komainu.

The transfers form part of FAB’s wider digital assets programme, which also includes recent work on tokenised deposits and the Swift ledger. Komainu said the deal reflected a growing focus on working directly with banks.

Komainu, which is backed by Laser Digital and Blockstream, is headquartered in Jersey with offices in London, Dubai and Singapore. Its Jersey entity is regulated by the Jersey Financial Services Commission and its Dubai entity by the Dubai Virtual Assets Regulatory Authority.