Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has joined forces with Komainu to give institutional clients the ability to trade around the clock without having to park assets directly on an exchange. The partnership plugs Bybit into Komainu’s collateral management network, Komainu Connect, allowing delegated assets to remain in regulated, third-party custody while still being tradable on Bybit’s order books.

The move is aimed squarely at institutional concerns about counterparty and settlement risk. Under the agreement, clients can trade 24/7 while their holdings are held in on-chain, bankruptcy-remote segregated wallets managed by Komainu. Regular, automated off-exchange settlement removes the need for institutions to pre-fund exchange accounts, a change that proponents say reduces operational friction and lowers exposure to exchange counterparty risk.

Komainu has been expanding Komainu Connect by integrating directly with exchanges, lenders and brokers, and the platform is designed to mirror collateral held in custody on the exchange so that delegated collateral is visible and immediately usable for trading. The integration promises a single, holistic view of custody and collateral for each client, alongside broad asset coverage intended to support the range of institutional-grade tokens many professional traders require.

Custody-First Market Access

For institutions, the practical benefits are straightforward: assets remain protected in a regulated custody environment while trading activity continues uninterrupted; settlements are handled off-exchange and automated; and each client’s holdings are kept in dedicated, client-by-client wallets to improve transparency and legal clarity. Komainu, backed by Laser Digital and Blockstream, has positioned the Connect offering as a bridge between traditional custody safeguards and the speed and liquidity of active crypto markets.

The announcement includes comments from senior executives on both sides. Paul Frost Smith, Co-CEO at Komainu, said the partnership strengthens the roster of trusted exchanges on the Komainu Connect network and reflects growing institutional demand for market access without compromising security or compliance. Yoyee Wang, Head of Bybit’s Business to Business unit, framed the tie-up as part of the exchange’s ongoing work to respond to client needs for trust, security and scalable, regulated custody options.

The Bybit–Komainu deal follows a broader industry push toward custody-to-market solutions: in recent months, other major venues have explored or formalised connections with Komainu as institutions press for ways to trade without increasing their exposure to trading counterparties. Market observers say the trend shows a maturation of institutional infrastructure in crypto as firms weigh liquidity access against the lessons of prior market stress.

For institutional desks juggling compliance, liquidity and settlement risks, the Bybit–Komainu integration offers a cleaner workflow: tradeable positions that remain legally and operationally segregated from an exchange’s balance sheet, and settlements orchestrated so firms do not need to keep large pools of capital sitting on order books. Whether that model becomes the industry norm will depend on how quickly more venues and prime brokers adopt similar custody-first architectures, and how regulators view the growing interplay between custodians and trading venues.