- Komainu has announced its first acquisition in Singapore.
- The move followed the appointment of new CEOs in May.
- The company is also eyeing a new license in Singapore.
Nomura-backed crypto custodian Komainu has agreed to buy Singaporean rival Propine Holdings Pte Ltd., subject to the Monetary Authority of Singapore (MAS) approval.
The planned takeover, which would mark Komainu’s first acquisition, came nearly five months after the company named Frost Smith and Robert Johnson as its co-CEOs following Nicolas Bertrand’s resignation in February. Komainu said Bertrand would be around for a few months “in whatever capacity” the company needed him.
Komainu’s First Acquisition
According to a press release on October 22, Komainu’s acquisition of Propine enhances its presence in Singapore and provides a new regional hub for its custodial and digital asset servicing capabilities.
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Propine acquisition will yield Komainu a Capital Market Services license for providing regulated digital asset custody under Singapore’s Securities and Futures Act, which Frost Smith said was an “absolutely key factor in building” the company’s business.
“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, including for Komainu Connect, our collateral management service,” Frost Smith stated.
While Komainu didn’t disclose how much it was paying to buy Propine, Frost Smith told Bloomberg on Tuesday that the deal was likely the first of several acquisitions amid rising demand from private banks in Singapore for advisory services and asset managers for collateral management services.
The co-CEO revealed that Komainu will apply for Singapore’s Major Payment Institution (MPI) license, allowing it to operate as a fully regulated payment services company. Per Smith, Komainu expects to close a funding round “in the next few weeks.”
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