Institutional crypto traders can now execute trades around the clock without moving their assets out of custody, thanks to a new partnership between Bybit and Komainu.
Key Takeaways
- Bybit has joined Komainu Connect, enabling institutional clients to trade 24/7 while keeping assets securely held by a regulated third-party custodian.
- The integration eliminates the need to pre-fund exchange accounts, reducing counterparty and operational risk.
- All trades are backed by a collateral mirroring system, ensuring one-to-one asset reflection on the exchange.
- Segregated, on-chain wallets offer legal clarity and full transparency, appealing to compliance-driven investors.
What Happened?
Cryptocurrency exchange Bybit has teamed up with digital asset custodian Komainu to roll out a new 24/7 trading model for institutional investors. The collaboration centers around Komainu Connect, a collateral management platform that allows assets to remain securely custodied while still being actively tradable on Bybit. This marks a major step in advancing secure and flexible trading environments for high-volume, compliance-focused investors.
Bybit has partnered with regulated custodian Komainu to integrate its Komainu Connect platform, enabling institutional clients to trade on Bybit while assets remain securely held by a third party, reducing counterparty risk and improving capital efficiency.…
— Wu Blockchain (@WuBlockchain) December 3, 2025
Bybit and Komainu Aim to Revolutionize Institutional Trading
The partnership introduces a continuous trading framework that removes the need for pre-funding exchange accounts, a long-standing barrier for professional investors. Through a collateral mirroring mechanism, every asset stored in Komainu’s custody platform is reflected one-to-one on Bybit, allowing for round-the-clock order execution.
This setup means that while clients retain full custody and legal control of their assets, they can still participate in real-time market activity without increased exposure. It reduces operational risks by keeping assets off-exchange and under the management of a regulated custodian.
Key Features of the New Model
- Collateral Mirroring: Ensures a one-to-one match between assets held in custody and those shown on Bybit for seamless execution.
- Off-Exchange Settlement: An automated system adjusts balances between custody and trading environments, without moving funds into higher-risk settings.
- On-Chain, Bankruptcy-Remote Wallets: Segregated client wallets enhance transparency, protect ownership rights, and are structured for maximum legal clarity.
- Scalability and Flexibility: Designed to support institutional-grade assets and large-scale operations.
Komainu’s growing Komainu Connect ecosystem is built to link directly with exchanges, lenders, and institutional brokers, offering fast and frictionless market access. Bybit contributes depth and liquidity, while Komainu strengthens the structure with regulated custody services and a robust collateral framework.
Voices From the Leaders
Paul Frost Smith, Co-CEO of Komainu, emphasized the strategic value of the collaboration, stating:
Bybit’s Head of B2B, Yoyee Wang, echoed the sentiment, adding:
CoinLaw’s Takeaway
In my experience, partnerships like this signal a real shift in how institutions view crypto. The old days of needing to risk funds on a crypto exchange just to trade efficiently are fading fast. This model smartly separates custody from execution, giving institutions a toolset they’ve long demanded. I found the use of on-chain, segregated wallets particularly reassuring in an industry where transparency is often lacking. This isn’t just a feature upgrade. It’s a meaningful evolution in how large players can safely engage with crypto markets.
