Crypto Custodian Koine Secures In-Principal Approval In The UAE

News, Regulation | May 19, 2020 By:

Digital asset custodian Koine has been awarded in-principle approval (IPA) by the Financial Services Regulatory Authority (FSRA) to provide custody in relation to virtual assets in the Abu Dhabi Global Market (ADGM).

Founded in 2017, Koine offers segregated, institutional custody and settlement of digital assets, providing a transformative security model, eliminating settlement and counterparty risks. The firm claims that its platform brings together the full suite of governance, compliance, risk management and audit of real-time asset trading to the digital ecosystem.

According to Koine, the design that the company utilizes allows for any potential failure of an exchange/venue leaving client assets fully intact and available for use. The platform allows for assets and fiat currency to be moved in sub-second timeframes between market venues allowing for settlement in real-time using Delivery vs. Payment (DvP) and at fixed prices which are known in advance. Humans intervention is removed from the standard post-trade process reducing security risks. Additionally, Koine ensure that the average value of funds held in hot wallets is nil. Value at Risk is properly insured. The platform is also suitable for Market Makers and Algorithmic Traders.

“The Koine model has always been one built upon the fundamental importance of good governance. This is the only way to attract institutional capital into the digital asset market, unlocking the huge, industry wide benefits that come with it,” said Hugh Hughes, Chairman and CEO at Koine. “Delivering best practice and regulatory compliance for our institutional clients is something we take very seriously. Not only does this latest In-Principal Approval from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) further strengthen Koine’s global footprint, but also serves to reaffirm our belief in robust regulation. We look forward to future constructive dialogue with regulators and institutions in the UAE and around the world, in line with our focus of putting the client’s needs for regulatory oversight at front of mind. Following this further vote of confidence in our model, we are sure this will give our clients even greater reassurance when looking to move into one of the most vibrant sectors of the financial ecosystem.”

Abdulla Al Mansoori, Chairman Designate, Koine, Middle East, said that the IPA from the ADGM is an important milestone in their efforts to be a leading enabler of the digitally-enabled market infrastructure and rapidly growing digital transformation process in the region.

“Our capital market expertise, innovation and deep understanding of customer needs places us in a unique position to be the premier provider of custody and settlement services for the institutional market participants seeking to take advantage of the growing digital assets revolution,” said Al Mansoori.