Copper announced Thursday that Komainu is a joint venture between Nomura Ledger CoinShares and CoinShares to provide crypto custody. Komainu will join the ClearLoop network of Copper.

According to the company, this tie-up allows institutional clients of Komainu trade via ClearLoop. Komainu will provide regulated custody on the chain, and the clients can also access off-exchange settlement via the network.

After the collapse of cryptocurrency exchange FTX in 2017, investors have begun to pay more attention to counterparty and custody risk. ClearLoop allows users to keep assets in their possession until the moment of a trade. This reduces counterparty risk, and eliminates the need for investors to transfer assets into an exchange-based wallet.

Nicolas Bertrand, CEO of Komainu, said: “Together we will bring best practices and infrastructure that have been tested in traditional markets. This will help digital asset participants diversify their counterparty risks.”

Legal documentation must be finalized before the partnership can begin.

Komainu has joined the U.K. crypto register after successfully registering at the Financial Conduct Authority.

Read more about Nomura-backed Komainu joining the U.K. Crypto Register

Sheldon Reback is the editor.