First Abu Dhabi Bank and Komainu Complete Live Digital Asset Transfers Under New Custody Framework

Regulated digital asset custodian, Komainu, has completed two-way digital asset transfers with First Abu Dhabi Bank (FAB) through an institutional custody framework the two organisations have built together. The transfers settled instantly, marking the first live operation of the arrangement.

The milestone signals a shift from planning to production for a collaboration that has been in development between Komainu and FAB Global Markets. The framework integrates regulated digital asset custody and connectivity capabilities directly into FAB’s existing infrastructure, allowing the bank to move digital assets both into and out of the custody environment.

From Strategy To Implementation

For banks exploring digital assets, the challenge has moved on from deciding whether to participate to working out how. Komainu’s position is that custody infrastructure needs to fit within the controls, workflows and governance structures that financial institutions already rely on, rather than requiring them to build parallel operating models.

The framework with FAB has been designed with that in mind. By connecting regulated custody to the bank’s existing systems, the arrangement is intended to let FAB put digital asset capabilities into production without the scale of operational change that earlier institutional efforts often required.

Group Managing Director of Komainu, Paul Frost-Smith, described the significance of the milestone: “Banks need digital asset infrastructure that meets the same standards as the rest of their business. That calls for a provider that understands both worlds: the controls, governance and regulatory expectations of traditional finance, and the operational realities of digital assets. 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,” Frost-Smith continued. “We are pleased to support FAB as it develops its institutional offering, including financing backed by assets held in segregated, regulated custody.”

Lending And Financing On The Roadmap

The framework has also been structured to support future institutional financing products, including lending backed by digital assets held in regulated custody. That capability would give FAB a foundation to develop new financing products that use digital assets as collateral within a regulated, segregated custody environment.

It is a direction that several large banks have been moving toward, as the combination of clearer regulatory frameworks and growing client demand makes it more practical to offer digital asset-backed financial products alongside traditional ones.

Part Of A Broader Programme

The Komainu collaboration sits within a wider digital assets programme at FAB. The bank has also been working on tokenised deposits and Swift ledger integration, areas that together indicate a systematic effort to build digital asset capabilities across its financial markets infrastructure rather than through isolated projects.

For Komainu, the FAB transfers reflect a strategic focus on working directly with banks to connect traditional financial markets infrastructure with the digital asset ecosystem. The company operates from its headquarters in Jersey, with offices in London, Dubai and Singapore, and holds regulatory oversight across multiple jurisdictions.

Komainu (Jersey) Limited is regulated by the Jersey Financial Services Commission. Komainu MEA FZE is regulated by the Dubai Virtual Assets Regulatory Authority.

Background

Komainu was established to provide institutional-grade custody and services for digital assets, with backing from Laser Digital and Blockstream. Its focus has been on building infrastructure that meets the governance and compliance expectations of institutional investors and financial institutions, rather than retail or exchange-facing custody.

The completion of live transfers with a bank of FAB’s scale is a notable step in that direction, demonstrating that the operational and regulatory groundwork required for institutional digital asset custody can be put into production within an existing bank’s infrastructure and day-to-day workflows.