Nomura, Ledger, and Global Advisors partner to explore building a “secure digital asset custody solution” for institutional cryptocurrency investors.
Under the guise of new venture, Komainu (which is the Japanese name for the ‘lion-dog’ statues that are often seen guarding Shinto shrines in the country), international investment bank Nomura, investment specialists Global Advisors, and hardware cryptocurrency security experts Ledger have announced plans to join forces in an attempt to convince institutional investors to back digital currencies. Part of that plan is to come up with “new services, standards and best practice” for the sector.
Bringing together the traditional and brave new worlds of asset management and custody, the company hopes to court big banks and funds by providing an infrastructure and operational framework for the wider investment management industry, enabling them to implement consistent standards across their businesses.
To company believes that, thus far, institutions such as banks and investment funds have been put off dealing with cryptocurrency due to a “lack of security, regulatory and compliance criteria” within, what its press release characterised as a “frontier ecosystem”.
It, however, sees a massive target market for its services nevertheless, noting that one-in-five finance firms are considering launching digital asset and trading and investment businesses in the coming year, according to Reuters.
Jez Mohideen, Global Chief Digital Officer, Wholesale at Nomura, said: “Global investment managers have long been held back from full participation in digital asset markets, limited by operational and regulatory risk. Our new partnership will set the required standards that will bring peace of mind to digital asset investors, and provide tools and products to enable better integration with more traditional investment vehicles such as mutual funds.”
Pascal Gauthier, President of Ledger, said: “Ledger is a well-established security solution provider with over 1 million Nano S hardware wallets sold… By bringing together financial industry experts and digital asset security leaders, our new venture will provide, for the first time, services and solutions built for business.”
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