Nomura-Backed Komainu Expands Asian Footprint with Strategic Propine Acquisition
In a significant move to strengthen its presence in the Asian digital asset market, Komainu, the institutional-grade crypto custodian backed by Nomura, has announced an agreement to acquire Singapore-based Propine Holdings Pte Ltd. The acquisition, pending approval from the Monetary Authority of Singapore (MAS), marks Komainu’s first strategic purchase and signals an ambitious expansion into the Southeast Asian market.
The deal will grant Komainu a coveted Capital Markets Services License in Singapore, positioning the company to capitalize on the growing institutional demand for digital asset services in the region. Paul Frost-Smith, Co-CEO of Komainu, emphasized the strategic importance of the acquisition, noting that Singapore will serve as a crucial hub for the company’s Asian operations.
“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,” said Frost-Smith. The company’s collateral management service, Komainu Connect, is already widely used by institutional clients across Hong Kong, Singapore, Malaysia, Thailand, and Australia.
The combined platform aims to deliver enhanced security and bank-grade governance while adhering to stringent regulatory standards. Robert Johnson, Co-CEO and CTO at Komainu, highlighted that the acquisition would expand both their technological capabilities and the range of supported assets, enabling more comprehensive services for institutional clients.
Looking ahead, Komainu plans to apply for a Major Payment Institution license in Singapore, which would allow the firm to offer full payment services. The company reports increasing demand from private banks for advisory services and from hedge funds and asset managers for collateral management services in the region.
While Singapore represents a key expansion target, Frost-Smith confirmed that Japan remains a central focus for Komainu, given its status as Nomura’s home market. The company is also preparing to close a funding round in the coming weeks, though specific details about the amount remain undisclosed.
Tuhina Singh, CEO at Propine, expressed optimism about the merger: “This deal marks the start of a transformative chapter for Propine, as we join forces with Komainu to build out our capabilities in the region under the Komainu brand.”
Komainu, which currently maintains regulatory licenses or registrations in Jersey, Dubai, the UK, and Italy, stands as a prominent institutional digital asset custodians, competing with firms like Zodia Custody, which was founded by Standard Chartered and Northern Trust. The acquisition represents a strategic move to consolidate its position in the rapidly evolving Asian digital asset landscape.
