First Abu Dhabi Bank has a working route for moving digital assets into and out of regulated custody, and the setup is designed to support lending against those assets in future. Komainu, the custodian backed by Laser Digital and Blockstream, says it has completed the transfer of a portfolio of digital assets with FAB in both directions, through the institutional digital asset custody framework the two firms have established. According to Komainu, the transfers settled instantly.
Komainu says the step puts its collaboration with FAB Global Markets into operation, integrating regulated digital asset custody and connectivity capabilities with FAB’s existing infrastructure. In its words, the transfers demonstrate the bank’s ability to move digital assets both into and out of the custody environment.
Lending is where the framework is meant to go. Komainu says it has been designed to support future institutional financing solutions, including lending backed by digital assets held in regulated custody. The release gives no timeline, loan sizes or borrower names.
It also leaves out the size, value and make-up of the portfolio that was moved. The announcement comes from Komainu alone and carries no comment from FAB.
Komainu places the transfers within FAB’s wider digital assets programme. It says that programme also includes recent work on tokenised deposits and Swift ledger.
“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. “We are pleased to support FAB as it develops its institutional offering, including financing backed by assets held in segregated, regulated custody.”
Komainu is headquartered in Jersey, with offices in London, Dubai and Singapore. Komainu (Jersey) Limited is regulated by the Jersey Financial Services Commission. Komainu MEA FZE is regulated by the Dubai Virtual Assets Regulatory Authority.
Herald View
Moving assets in and out of custody is plumbing. The money in this framework is in the lending it is designed to support, because a bank that holds digital assets in regulated custody can begin to treat them as collateral. FAB does not speak in this release, and until it sets out its own financing plans, this is Komainu’s milestone more than the bank’s.
