UAE FAB Bank can now support digital asset activity with Komainu

Komainu, a regulated digital asset services provider and custodian backed by Laser Digital and Blockstream, has completed the two-way transfer of a portfolio of digital assets with First Abu Dhabi Bank (FAB) through the institutional digital asset custody framework the two firms have established. The transfers settled instantly. FAB can now move digital assets both into and out of custody environments, which is required to support digital asset activity.

This is the operational implementation of Komainu’s and FAB Global Markets integration of regulated digital asset custody and connectivity within the bank’s infrastructure.

FAB Bank will in the future be able to offer digital asset lending held in regulated custody offering a foundation for the bank to integrate digital assets into its financial markets infrastructure and develop new institutional financing capabilities.

As institutional interest in digital assets matures, the main challenge for banks has shifted from strategy to implementation. Komainu’s regulated, custody-first infrastructure is designed to fit within the controls, workflows and governance that banks already rely on, reducing the operational change required to participate. This allows institutions such as FAB to put digital asset capabilities into production with confidence.

Paul Frost-Smith, Group Managing Director of Komainu, noted that Banks need digital asset infrastructure that meets the same standards as the rest of their business.

He explains that this calls for a provider that understands both worlds: the controls, governance and regulatory expectations of traditional finance, and the operational realities of digital assets.

He adds, “Komainu was built with that combination in mind from the start. Completing these transfers with FAB shows that regulated custody can be integrated into a bank’s existing systems and run as part of its day-to-day operations. We are pleased to support FAB as it develops its institutional offering, including financing backed by assets held in segregated, regulated custody.”

The milestone forms part of FAB’s wider digital assets program, which also includes recent work on tokenized deposits and Swift ledger.