Nomura-Backed Komainu to Acquire Singapore-Based Custodian Propine

Crypto custody firm Komainu is set to acquire Singapore-based custodian, Propine Holdings. Backed by Nomura, Komainu's acquisition is pending approval from the Monetary Authority of Singapore (MAS).

In a statement, Komainu noted the acquisition will enhance its presence in Singapore, offering "robust security and bank-grade governance" while adhering to the "highest regulatory standards."

Co-CEO Paul Frost Smith described Singapore as an "important strategic hub" for the firm and added that Propine will enhance Komainu's capabilities "in meeting the significant client demand" it is experiencing.

Komainu is also applying for a Major Payment Institution license in Singapore, which allows the firm to offer full payment services in the city-state.

Komainu co-CEO Robert Johnson added, "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."

Propine, which holds a Capital Markets Services License from MAS, offers custody services for institutional clients. The company offers Digital Payment Token services under an exemption provided by the Payment Services Act 2019.

"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," Smith said.

Japan remains a key market for Komainu and will act as a significant hub, particularly as it's Nomura's home base. Komainu's funding round is expected to close within the next few weeks, though the amount has not been disclosed.