Komainu, a cryptocurrency custodian backed by Nomura Holdings, has announced its first acquisition: Singapore based Propine Holdings Pte Ltd.
This deal is currently awaiting approval from the Monetary Authority of Singapore (MAS). The acquisition aims to enhance Komainu’s presence in the growing digital asset market in Asia.
Approval Process
Before the acquisition can be finalized, Komainu must obtain approval from the Monetary Authority of Singapore. This regulatory step is crucial for the company as it plans to expand its operations in the region.
Expanding in Asia
The purchase of Propine is part of Komainu’s strategy to strengthen its foothold in Asia. This region has increasingly established regulatory frameworks for digital assets, particularly in countries like Singapore, Hong Kong, and Japan. This also intends to apply for a Major Payment Institution license in Singapore, which will allow it to provide comprehensive payment services.
Meeting Client Demand
Komainu has seen a rise in interest from private banks, hedge funds, and asset managers in Singapore. The firm offers advisory and collateral management services that have gained popularity among its clients. Paul Frost Smith, co CEO at Komainu, stressed the importance of this acquisition:
“Singapore is an important strategic hub for Komainu in Asia and Propine will enhance our capabilities in meeting the significant client demand we are experiencing, including for Komainu Connect, our collateral management service, which is already extensively utilised by our investor clients in Hong Kong, Singapore, Malaysia, Thailand, and Australia. Asia Pacific is central to Komainu’s heritage, and having a strong presence in Singapore will enable us to leverage talent across the region as well as better serve our Asia based clients in their own time zone.”
Enhancing Service Providings
The acquisition will allow Komainu to provide a wider range of technology solutions for asset safety and security. Robert Johnson, co CEO and CTO at Komainu, noted,
“This acquisition will allow us to offer even greater choice to our clients in the technology solutions they adopt to keep their assets safe and secure, and strengthens our existing Asia operations team. At Komainu we offer bespoke services to our clients, and this acquisition will expand the types of solution we can offer as well as the range of assets we support. Our combined infrastructure will further empower institutional clients in confidently navigating the complexities of digital asset custody, ensuring the highest levels of performance, scalability, and security”
Propine’s Perspective
Tuhina Singh, CEO at Propine, expressed interest about the deal. She said,
“This deal marks the start of a transformative chapter for Propine, as we join forces with Komainu, backed by Laser Digital, to build out our capabilities in the region under the Komainu brand. We are excited to build on our success to date with the backing and support of the Komainu group and expand our offering across Asia Pacific.”
The Transition of Crypto in Japan
As this focuses on expansion, Japan is also evolving in the crypto sector. The Financial Services Agency (FSA) in Japan has proposed a reduction in crypto tax rates to align them with other financial assets. This could lower the tax rate on crypto profits to a flat 20%. The FSA’s push to treat cryptocurrencies as traditional financial assets aims to encourage more public investment in digital currencies.
Growing Crypto Adoption in Japan
A Bitget study predicts that the number of daily crypto traders in Japan will rise from 350,000 to around 500,000 by the end of the year. This growth could place Japan’s crypto market size between those of Turkey and Indonesia, and about two thirds the size of South Korea’s market. Gracy Chen, CEO of Bitget, commented on Japan’s potential:
“Japan with its high awareness for crypto is a dynamic and rapidly evolving landscape.”
Also Read : Bitget Token $BGB Crashed 50% and Surged 120% in 2 Hours
Conclusion
As Komainu’s acquisition of Propine Holdings represents an important development in the company’s strategy for growth in Asia. This acquisition not only broadens Komainu’s range of services but also reinforces its standing in the rapidly changing digital asset market. This move reflects the ongoing evolution of the digital asset space in Asia.
