Crypto custodian Komainu debuts yield generating platform for clients

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Komainu, a crypto custodian, has announced the launch of a yield generating service for its cryptocurrency custody clients, the company announced on Tuesday.

Dubbed Komainu Yield, the platform allows the company’s clients to earn yield on the crypto assets held on their behalf by Komainu. The company will stake custodied crypto to earn yields on offer in various proof-of-stake protocols, while still keeping the assets under secure storage.

CoinShares, one of Komainu’s backers, will be the first client to utilize the platform. The cryptocurrency asset manager already secures a pair of crypto exchange-traded products (ETPs) — CoinShares Physically Staked Tezos and CoinShares Physically Staked Polkadot — with Komainu.

As part of the announcement, Komainu President Henson Orser stated that the decision to launch the yield product was to help the company improve its market position amid the pivot towards proof of stake. Orser added that Komainu Yield offers a “secure and transparent” means for clients to earn returns on their stored crypto assets.

While staking is the first avenue explored by Komainu, the company says it has plans to incorporate other yield-generating strategies into the platform.

CoinShares, together with Japanese investment bank Nomura and crypto hardware wallet maker Ledger launched Komainu as a hybrid digital asset custodian in June 2020. The company raised $25 million in a Series A funding round led by hedge fund veteran Alan Howard in March 2021.

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Source: https://www.theblockcrypto.com/linked/133425/crypto-custodian-komainu-debuts-yield-generating-platform-for-clients?utm_source=rss&utm_medium=rss