OKX, the second largest cryptocurrency exchange in the world, has partnered with digital asset storage firm Komainu to offer institutional users the ability to keep their crypto in a Nomura-backed custodian while trading on the exchange.

This move towards vertical integration in crypto exchanges mirrors traditional finance practices of using third-party custodians to avoid potential collapses. OKX is the first client to use Komainu Connect, a regulated settlement and custody system for institutional customers that offers 24/7 trading with a mix of cold storage, multiparty computation, and hardware security modules.

The partnership is expected to result in a significant transfer of assets under custody to Komainu, as the firms enhance their institutional product offering.