Welcome to our series, ‘Meet the Team’, where we meet the people behind the businesses in the Channel Islands to find out what they’re doing and what makes them tick.
Today, we meet Susan Patterson, Head of Jersey Office at Komainu.
1. Tell us about your business
Komainu is a digital asset custodian operating at the intersection of traditional finance and digital assets.
We began our journey as a joint venture between Nomura, Ledger and CoinShares in 2018 and officially launched our services in 2020. I was lucky enough to join the project at inception and it is amazing to see how our business has expanded globally with Komainu now being strategically positioned to capitalize on the growing demand for institutional-grade custody solutions in the digital asset space. As more institutional investors explore opportunities in cryptocurrencies and tokenized assets, we aim to be at the forefront of providing trusted custodial services.
We’ve experienced steady growth and have been building a truly institutional offering, securing regulatory licenses in key regions such as Jersey, the UK, Dubai and Italy, building key ecosystem partnerships and adapting to the rapid pace of growth in this space.
2. What’s the most interesting thing you’re working on right now?
Partnerships – connectivity and collaboration are key to building an institutional ecosystem and we have been forging strategic partnerships to help solidify our position as a trusted custodian within the digital asset space.
Last year, we launched Komainu Connect, our collateral management offering, designed to help mitigate counterparty risk, removing the need for clients to store collateral with trading counterparties, to create a solution that, via partners, facilitates 24/7 trading with assets held in custody. This allows clients to maximize investment opportunities whilst keeping their assets separate and secure. We are proudly partnered with leading platforms like OKX, Hidden Road, Gate.io, and Copper’s ClearLoop.
3. What has been your biggest business challenge?
A major business challenge that we had to overcome when starting Komainu were misconceptions that use cases for digital assets were predominantly illicit or opaque transactions. The market has quickly come round to understanding that these sorts of activities make up a very small percentage of transactions and that institutional interest in developing practical uses for digital assets is now overwhelming.
Banks, brokers, insurers, everyone is, at the least, exploring what is possible with blockchain and digital assets. Many are far beyond this point and are using digital assets as a core part of their business already. Today, our primary challenge lies in scaling our operations and resources to meet evolving client needs. Our agility and commitment to innovation remain pivotal as we navigate the dynamic landscape of digital asset custody.
4. What are you most optimistic about in the industry today?
The rate of institutional adoption. Over the past few years, we have seen a steady increase in institutional participation in digital assets, drawing well known traditional financial institutions, hedge funds, and family offices into the space. The influx of capital from renowned financial institutions, coupled with significant regulatory approvals for ETFs, signals a significant inflection point for the industry. As significant institutional capital flows into the ecosystem, custody becomes even more critical. Institutions need secure, efficient, and trusted market infrastructure, and we are excited to play a key part in this growth.
Our team at Komainu boasts a wealth of expertise in both traditional finance and emerging technologies. With backgrounds in cybersecurity, finance, and blockchain, we’re equipped to address the complex challenges of digital asset custody and are 100% committed to building the solutions that our institutional clients need.
5. What can jurisdictions do to help the safe development of the digital assets ecosystem?
Digital assets are starting to become more acceptable as just another asset class to hold alongside traditional products. To propel this opportunity further into the mainstream, jurisdictions need to create clear regulatory frameworks for businesses looking to participate in the digital asset space. Globally, our regulatory wish list remains consistent – global clarity around definitions, disclosures, and cross-border regulatory coordination. The industry, along with governments and regulatory bodies, must work together to find a clear path forward.
In Jersey, Komainu is both registered as a Virtual Asset Service Provider and is regulated by the Jersey Financial Services Commission, which has long been a pioneer in offering regulatory clarity for businesses like Komainu. We continue to work with various regulatory and governmental bodies to support the development of proportionate regulation, in the best interests of all parties but still offering the safeguards for investors.
6. Have you had support from organisations such as Jersey Business and Digital Jersey?
“Our aim is to showcase Jersey’s appeal as the jurisdiction of choice for digital asset service providers and contribute to the discourse on the future of finance”
In 2018, Digital Jersey supported Komainu in the early days of establishing the business, and as a member, we now enjoy the benefits of meeting other members within the digital asset community.
As a regulated company headquartered in Jersey, it was an obvious choice for Komainu to became a member of Jersey Finance Limited and whilst we are newer members, we’re eagerly anticipating collaboration with the Jersey Finance Limited team and other members. We’re particularly supportive of both Digital Jersey and Jersey Finance Limited’s mission to promote Jersey as a vibrant hub for digital services and infrastructure.
Our aim is to showcase Jerseys appeal as the jurisdiction of choice for digital asset service providers and contribute to the discourse on the future of finance.
7. What advice would you give professionals interested in the digital assets opportunity?
For professionals intrigued by the digital assets sector, my advice would be to invest the time in understanding the nuances and benefits of blockchain technology and the digital asset ecosystem. Stay abreast of regulatory developments and market trends, as these are changing at pace, and seek opportunities to network within the industry. You will soon see that expertise in finance, technology, and compliance are invaluable assets to have when either considering a career change or when contemplating enhancing your product offering to include digital assets services for your clients.
8. What do you do in your downtime?
I have just taken up sailing again after many years, and love anything involving sport and outdoor activities (when it is sunny!). I’m also partial to enjoying the food at many of the wonderful restaurants here in Jersey and love to travel – in 2022 I got to within 10 degrees of the North Pole.
I flew with the Blades in 2022 (see the main picture), with ex red arrow pilot Mike Ling (Lingy). The Blades is an acrobatic display team who have displayed in Jersey and Guernsey in the past. It was an incredible and unforgettable experience. Next stop the two-seater Spitfire!
9. How do you start your day?
I get up at 5.30am, first stop is either at the gym or I go for a run outside. There is nothing like starting the day running in nature, no airpods, just with the sound of the birds and the sea. Then I have a well-earned cup of tea.
10. What’s your favourite film?
At this point I think most people would say Shawshank Redemption! Mine would have to be Pride and Prejudice!
11. Are you listening to any podcasts at the moment?
Yes, I’ve been listening to British Scandals, hosted by Alice Levine and Matt Forde. Each season covers a fascinating story of notorious scandals relating to people in power, politicians, publicists, authors and even the Great Train Robbers. Told in such a funny and animated way, they keep the listener totally engaged.
What each story reveals is that on reflection, there were so many obvious signals that were either disregarded or missed but the bad guys got caught in the end!
12. What book are you reading at the moment?
I am currently reading two books, ‘Going Infinite: The Rise and Fall of a New Tycoon’ by Michael Lewis and ‘Stand up Straight – 10 Life Lessons’ by Major General Paul Nanson.
Going Infinite explores the origins of Sam Bankman-Fried’s (SBF) ideals and the questionable behaviours, which ultimately led to his downfall and that of FTX exchange, resulting sadly in many being affected. It is a fascinating read.
10 Life Lessons covers the training all officers receive at the British Army’s world leading academy. Many of the leadership skills learnt in training at Sandhurst and on the battlefield can equate to being a good leader in any business. It gives good examples of discipline, emotional intelligence, resilience and skills for fast decision making process when under pressure. I thoroughly enjoyed it however, I draw the line at doing ‘hospital corners’ for inspection when making the bed!
And finally…
I often get asked by clients what is in the name, ‘Komainu’. Well, Komainu, or lion-dogs, are stone guardians watching the entrance to Shinto shrines. One creature has its mouth closed, signifying security and confidentiality to those who pass. The other, open, announcing presence and permanence to the world.
Komainu are often visible at the gates of a shrine — but equally often, they’re hidden from view, safeguarding from the shadows.
Komainu is built on these same principles.
For further information about Komainu, Susan Patterson can be contacted here.
