Nomura, CoinShares, and Ledger JV Wins Dubai Operating License

Updated: 22 August 2023

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Komainu, a collaborative endeavor formed by financial giants Nomura, digital asset manager CoinShares, and digital asset security company Ledger, has successfully secured a Virtual Asset Service Provider (VASP) license from the Virtual Asset Regulatory Authority (VARA) in Dubai. This milestone achievement marks a significant step forward in Komainu’s mission to offer institutional clients secure and compliant custody services for digital assets.

According to the company statement, this recent accomplishment signifies a promising chapter in its operations within Dubai. The company’s subsidiary, Komainu MEA FZE, underscores its commitment to establishing a significant regional presence aligned with its strategic objectives.

The company highlighted that by completing this last phase of VARA’s licensing procedure, Komainu becomes capable of providing its comprehensive range of custody services. These services encompass institutional staking and collateral management through its Komainu Connect platform, and they are available to customers in the Emirate.

Sebastian Widmann, Head of Strategy at Komainu, expressed enthusiasm about Dubai’s opportunities. He stated,

We see tremendous opportunities to scale our business here amid a significant boom in assets driven by fund formation and exchange launches.

Widmann acknowledged Dubai’s dynamic digital asset environment and added:

Dubai has a vibrant digital asset ecosystem and impressive talent pool, and we are proud to contribute to the growth of this innovative financial hub. Our presence and desirable regulatory status in the region marks another differentiator for us as we execute the next phase of our business

VARA’s Licensing Process

VARA has emerged as a pioneer in crafting a regulatory framework that stands as a beacon of clarity amid the regulatory uncertainties witnessed in various parts of the world. This approach has attracted a growing number of companies seeking regulatory approval. Gaining a VARA license involves a process that includes provisional approval, securing a Minimum Viable Product (MVP) license, and finally obtaining a full market product license.

Four-stage licensing process of VARA (Source: VARA)

Komainu’s journey through these stages reached its pinnacle with achieving the complete operating license after obtaining the MVP license in November 2022.

Notable Players and Licenses

The news of Komainu’s successful license acquisition arrives against the backdrop of Dubai’s dynamic and evolving industry landscape. Other prominent players in the cryptocurrency exchange sector have also been seeking and securing licenses from VARA.

Bybit, for instance, was granted a preliminary Minimum Viable Product (MVP) license in June. Similarly, OKX, one of the largest cryptocurrency exchanges by volume, obtained an MVP Preparatory license in the same month. Binance, the world’s largest cryptocurrency exchange, joined the ranks in July 2023 after fulfilling the pre-conditions set by VARA, which it received in September 2022.

Established in 2018 and launched in 2020, Komainu is a regulated digital asset custodian that safeguards assets for a diverse clientele, including exchanges, financial institutions, asset managers, corporations, and government agencies.

The company’s success story results from a collaboration between industry giants. Jointly built by Nomura, CoinShares, and Ledger, the custodial platform brings together the expertise and experience of these financial powerhouses. Headquartered in Jersey, Komainu is also regulated by the Jersey Financial Services Commission (JFSC).