Nomura-Backed Komainu Acquires Singaporean Custodian Propine to Expand into Asia

Komainu, a crypto custodian provider backed by the Nomura Group, has made its first acquisition by purchasing Singapore-based custodian Propine Holdings. This strategic move, reported by Bloomberg on October 22, is pending approval from the Monetary Authority of Singapore.

Propine, which has been operating as a digital asset custodian since 2018, was granted a conditional license by the Monetary Authority of Singapore in November 2019 after participating in the FinTech Regulatory Sandbox co-created by the agency.

Komainu's co-CEO, Paul Frost-Smith, indicated that this acquisition is just the beginning, with plans for further expansions in the future. However, he did not disclose the financial details of the deal. Frost-Smith also mentioned that Komainu expects to close a funding round in the coming weeks.

The acquisition of Propine is seen as a critical step for Komainu's growth in Asia, as it will provide the firm with a Capital Market Services license in Singapore. Additionally, Komainu plans to apply for a Major Payment Institution license, allowing it to operate more effectively in the region. Frost-Smith highlighted Singapore's importance to Komainu’s strategy, particularly due to the growing demand for advisory services from private banks and collateral management services for hedge funds and asset managers.

Komainu aims to expand its operations in Singapore, Hong Kong, and other regions with established digital asset regulations. Nonetheless, Frost-Smith emphasized that Japan will remain Komainu’s primary market, given Nomura’s home base there.

Since its inception in 2020, Komainu has been Nomura’s entry point into the crypto space, providing custody services for Bitcoin and other cryptocurrencies aimed at institutional investors. Initially, the firm focused on major cryptocurrencies like Bitcoin and Ethereum.