This acquisition, pending approval from the Monetary Authority of Singapore, aims to enhance Komainu's capabilities and establish a stronger presence in the region.

Komainu, a prominent regulated custodian for digital assets, has reached an agreement in principle to acquire Propine Holdings, a digital asset custodian based in Singapore.

By acquiring Propine, Komainu will gain a Capital Markets Services License, allowing it to offer regulated digital asset custody under Singapore's Securities and Futures Act.

The deal is expected to empower institutional clients by improving performance, scalability, and security in digital asset custody.

Following the FTX collapse in 2022, Singapore has implemented stricter regulations to promote responsible blockchain technology usage, creating a favorable environment for cryptocurrency businesses.

Komainu's expansion into Singapore is part of a broader trend of increasing institutional interest in Asia's cryptocurrency market.

The acquisition will allow Komainu to leverage Propine's existing infrastructure and client base, enhancing its service offerings for institutional clients.

Komainu's co-CEO Paul Frost-Smith emphasized the strategic importance of Singapore, noting that the acquisition will help meet the growing client demand for their services.

Tuhina Singh, CEO of Propine, expressed enthusiasm about the merger, highlighting its potential to transform their offerings across the Asia Pacific under the Komainu brand.

Komainu's recent moves, including the appointment of new co-CEOs and plans for a Major Payment Institution license, signal its commitment to expanding its operations in Asia.

As Komainu continues to grow, it aims to set new standards for innovation in digital asset services through the combined strengths of both organizations.

The financial details of the acquisition have not been disclosed, but it marks Komainu's first acquisition and is seen as the beginning of further expansion efforts.