Koine, a provider of segregated, institutional custody and settlement services for digital assets, has announced a joint venture with Canadian company DTM Global Holdings to deliver post-trade solutions across DTM’s FINTEGRATION™ ecosystem of fintech and eDigital Securities products for private and public sector enterprises.
The firm’s statement said that those in DTM’s international ecosystem who will benefit from Koine’s post-trade solutions include traditional (fiat) exchanges and digital securities trading platforms.
Together, the two companies plan to deliver a highly secure, compliant service to institutional market participants looking to invest in digital assets in a regulated environment.
In October 2019 Koine was authorised by the UK Financial Conduct Authority “FCA” to issue electronic money, is preparing to submit an application to the FCA to include authorisation to custody securities and, more recently, has been awarded in-principle approval (IPA) to provide custody in relation to Virtual Assets in the Abu Dhabi Global Market (ADGM).
Koine explained that customers in DTM’s international ecosystem gain access to a post-trade solution from a business licensed by the UK’s Financial Conduct Authority, a service specifically designed for institutional investors to mitigate counterparty, insolvency and credit risks of trading on exchanges.
The automated service obviates the need for humans in post-trade processes, delivering massive operational scalability with near real-time egress of digital assets from custody where required.
As a first step, DTM will work closely with Koine to develop a custody and settlement solution for eDigital securities for partners including of Metropolitan Stock Exchange of India (MSEI), one of the country’s national stock exchanges. Koine will integrate with VentureXchange™, DTM’s trading platform with the MSEI that enables investors to trade in certain digital portfolios once they are listed on the exchange.
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A second partnership will be to develop DTM’s DiGiX platform, a digital securities market conceived and created for the next generation of smart securities (SWISSI), according to the statement.
The first SWISSI will be a tradable diamond linked fund investing in physical diamonds that will be graded, priced and custodied with professional third parties.
Each e-Units of SWISSI will be traded on regulated public markets and sold through qualified or regulated market makers. Koine will provide full post-trade services for DTM’s first SWISSI diamond-backed token.
With this first SWISSI fund, Koine and DTM lead the way for replicating the structure for other underlying assets, such as OTC traded products and real estate investments.
Attracting institutional investors
“In the past year, we’ve announced a number of significant partnerships which consolidate Koine’s reputation as the custody and settlement platform of choice for institutional investors. With this DTM international JV, Koine will support traditional exchanges in their increasing digital asset needs, as well as the rapidly growing market of regulated digital securities. By expanding our capabilities in this way, we’re continuing to build and deliver the infrastructure and vision that industry participants need to protect and leverage their digital assets. We’re extremely pleased to be working with DTM,” Hugh Hughes, chairman and CEO at Koine, said.
Sanjeev Kumar, Director and CEO at DTM noted that the firm’s assessment is that, going forward, there will be a marriage or merger of some sort between the world of crypto and the traditional financial markets. This will most likely be the next evolutionary phase for the development of the global financial markets, in his view.
“The JV will serve as a key enabling infrastructure in building the ecosystem that the market will need,” Kumar said.