Komainu's First Step in Asia Expansion is to Acquire Propine

Digital asset custody provider Komainu has set its sights on acquiring Propine Holdings, the parent company of Singapore-based Propine Technologies.

If approved by the Monetary Authority of Singapore (MAS), this will mark Komainu's first acquisition.

Propine's CEO, Tuhina Singh, hinted it may not be the last:

“This deal marks the start of a transformative chapter for Propine, as we join forces with Komainu, backed by Laser Digital, to build out our capabilities in the region under the Komainu brand. We are excited to build on our success to date with the backing and support of the Komainu group and expand our offering across Asia Pacific.”

Propine Technologies holds a Capital Markets Services License from MAS, which Komainu's co-CEO, Paul Frost-Smith, emphasized as a critical asset for expanding their institutional custody services.

Upon completion of the acquisition, Komainu plans to apply for a Major Payment Institution (MPI) license, further strengthening its position in Asia, where it is currently focused on Japan.

Frost-Smith said in a statement:

“Singapore is an important strategic hub for Komainu in Asia and Propine will enhance our capabilities in meeting the significant client demand we are experiencing, including for Komainu Connect, our collateral management service, which is already extensively utilised by our investor clients in Hong Kong, Singapore, Malaysia, Thailand and Australia. Asia Pacific is central to Komainu’s heritage and having a strong presence in Singapore will enable us to leverage talent across the region as well as better serve our Asia-based clients in their own time zone.”

Frost-Smith described the acquisition as a pivotal step in Komainu's broader Asia expansion strategy, providing a licensed platform for future growth.

Though financial details were not disclosed, he noted that Komainu expects to close a funding round soon.

Robert Johnson, Co-CEO and CTO at Komainu, said:

“This acquisition will allow us to offer even greater choice to our clients in the technology solutions they adopt to keep their assets safe and secure, and strengthens our existing Asia operations team. At Komainu, we offer bespoke services to our clients and this acquisition will expand the types of solution we can offer as well as the range of assets we support. Our combined infrastructure will further empower institutional clients in confidently navigating the complexities of digital asset custody, ensuring the highest levels of performance, scalability and security.”

Following the acquisition, Propine will operate under the Komainu brand, according to Singh.

Komainu's Expansion

Komainu, founded in 2018 with support from Japanese investment bank Nomura’s Laser Digital subsidiary, along with cryptocurrency firms CoinShares and Ledger, launched its product in 2020.

While primarily focused on Japan, Komainu has expanded internationally, holding a full operating license from Dubai's Virtual Asset Regulatory Authority and custodian registration from the UK's Financial Conduct Authority.

Notably, it had already partnered with the City of London Police to store confiscated cryptocurrency prior to its UK registration.

Komainu plans to apply for a MPI license in Singapore, enabling it to offer full payment services, according to Frost-Smith.

He noted growing demand from Singaporean private banks for advisory services, as well as increased interest from hedge funds and asset managers in collateral management solutions.

Frost-Smith highlighted Singapore's strategic importance to Komainu's growth, while also signalling potential future expansion into Hong Kong and other regions with established digital asset regulations.

Despite this global expansion, Japan remains a core market due to its role as the home base of Nomura, Komainu's key investor.

Komainu expects to finalise a funding round in the coming weeks, though Frost-Smith declined to disclose the anticipated amount.