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Bitfinex has entered into a memorandum of understanding (MOU) with Komainu Connect, a regulated custodian backed by Ledger, to provide a secure and liquid trading environment for institutional investors, according to a press release on Thursday.

The partnership explores a novel remote custody solution to enable seamless asset transfers between custody and exchange. The companies said they have adopted Ledger Tradelink technology for off-exchange trading and settlement.

“Our partnership with Komainu Connect reflects our commitment to expanding secure trading options for our customers and provides institutional investors with an additional layer of security by allowing them to leverage Komainu’s regulated custody solution while also accessing Bitfinex’s robust trading environment,” said Paolo Ardoino, CTO of Bitfinex.

According to Bitfinex, the joint solution will provide institutions with access to Bitfinex’s deep liquidity and advanced trading features while ensuring the safety of their assets with Komainu.

Paul Frost-Smith, Co-CEO at Komainu, expressed his enthusiasm for working with Bitfinex to increase liquidity in their network.

“This partnership expands our ecosystem of trusted exchanges and enhances liquidity across our growing network of trading venues, from centralized exchanges, OTC desks, market makers and prime brokers,” said Frost-Smith.

Sebastien Badault, Executive VP Enterprise Revenue at Ledger, believes the initiative could set a new standard for off-exchange collateral pledging and settlement.

“We have long believed that establishing a uniform standard for off-exchange collateral pledging and settlement between custodians, exchanges, and liquidity providers is critical to scaling the institutional digital asset market,” Badault said.

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