TL;DR
Bybit and Komainu expand their institutional offering with a continuous trading model backed by regulated custody. The integration brings together two components that professional investors have demanded for years: immediate market access and strict control over segregated assets. The agreement eliminates the need to pre-fund exchange accounts and lowers operational risk by keeping all tokens under a regulated third-party custodian.
The structure is built on a collateral mirroring mechanism that replicates the balance of collateral wallets directly on Bybit. Every asset delegated to Komainu appears one-to-one on the exchange, enabling round-the-clock order execution without transferring funds into a more exposed environment. The system settles through an automated off-exchange process that adjusts balances and maintains a clear separation between custody and execution.
Komainu strengthens its platform through native connections to exchanges, lenders, and institutional brokers. These integrations provide an active network of counterparties and a direct order flow for clients who need uninterrupted execution and full visibility over their guarantees. The model offers segregated wallets, all on-chain and structured as bankruptcy-remote accounts, providing legal clarity and a verifiable 24/7 record.
Its operational scope includes coverage of institutional-grade assets and an infrastructure designed to scale with higher volumes. Its goal is to reach investors who require strong governance, transparent fund flows, and a collateral system that does not depend on the exchange’s credit risk.
Paul Frost Smith, co-CEO of Komainu, noted that adding Bybit addresses demand for trading conditions that do not require compromising on security or compliance standards. According to him, the model combines regulated custody with direct market access, creating a more stable environment for active strategies. Bybit emphasizes that the exchange’s priority is to strengthen institutional confidence and offer a service with high operational flexibility and professional custody.
The partnership relies on a structure in which each party provides a critical component: Bybit contributes liquidity and depth; Komainu provides segregated custody and a collateral framework that limits operational risks for managers, funds, and institutions that need to execute transactions without exposing their assets. The result is a continuous trading flow supported by a stricter asset-control model
