Balance Trust Company Achieves Qualified Custodian Registration
Balance, Canada's oldest and largest digital asset custodian, has made a significant stride in the financial services sector. The company is thrilled to announce that its subsidiary, Balance Trust Company, has been registered as a special purpose trust under Alberta's Loan and Trust Corporations Act. This milestone allows Balance Trust to operate as a qualified custodian in both Canada and the US, enabling it to cater to a wide array of regulated entities.
Expansion of Services
Since its establishment in early 2017, Balance has focused on innovating and enhancing its services to meet the needs of its growing clientele. By constructing its technology stack in-house, Balance takes pride in offering secure and reliable solutions without relying on third-party vendors, which can expose clients to increased risks.
Commitment to Security
George Bordianu, CEO of Balance, emphasizes the importance of security, stating that many traditional custodian services neglect to cover liabilities arising from programming defects. Balance’s comprehensive control over its software ensures that security is prioritized, as the same organization that develops the technology also safeguards client assets. This unique approach helps eliminate potential moral hazards associated with third-party technology providers.
Diverse Product Offerings
Balance offers a variety of services that broaden its clients' options in managing digital assets:
Offline and Warm Storage Solutions
Clients can choose between offline storage, which keeps assets secure in bank-grade vaults across Canada, and warm storage, allowing for cloud-based accessibility to manage transactions easily.
Innovative Solutions for Asset Management
Balance collaborates with clients through collateral management services that regulate third-party access to assets and escrow services ensuring conditions are met before releasing funds. The company also provides API access and mobile applications for real-time management of transactions.
Ecosystem Partnerships
Balance links its clients to a network of top-tier partners, including renowned companies like Attestant and Coinbase, allowing for seamless staking, lending, and liquidation of digital assets.
Vision for the Future
James Slazas, Director of Balance Trust Company, articulates a clear vision for the future. The registration of the trust charter and expanding integration with ecosystem partners signifies a decisive turn towards establishing Canada as a secure hub for digital asset management. The team acknowledges the support received from Alberta's Treasury Board and Finance, recognizing the collaboration as instrumental in realizing this vision.
Importance of Local Custodianship
Jean Desgagné, another integral member of Balance Trust, highlights a compelling argument for reliance on local custodians. He mentions that Canadian asset managers have had little option but to engage US custodians, leading to the offshoring of over $5 billion worth of digital assets. Balance's presence as a qualified custodian signifies a turning point to retain these assets within Canada, strengthening local financial services infrastructure.
Testimonials from Partners
Balance's collaboration with industry players, like BlockFills, emphasizes the growing respect and reliance on its services. John Divine, Head of OTC Trading at BlockFills, expressed enthusiasm about leveraging Balance’s innovative platform, showcasing a commitment to regulatory compliance that aligns closely with BlockFills' operational strategy.
Connecting Clients to Leading Providers
Through its digital asset rails, Balance connects clients to other industry leaders, empowering them to manage substantial digital asset portfolios securely and efficiently. This service not only streamlines asset management but also positions Balance Trust Company as a cornerstone in the digital economy.
Frequently Asked Questions
What is Balance Trust Company?
Balance Trust Company is a subsidiary of Balance and operates as a qualified custodian under Alberta's Loan and Trust Corporations Act.
What services does Balance provide?
Balance offers offline and warm storage, collateral management, escrow services, API access, and mobile app functionalities to its clients.
Who can benefit from Balance's services?
Public ETF and mutual fund issuers, registered investment advisers, restricted dealer cryptoasset trading platforms, and accredited investors can benefit from Balance's custodial services.
Why is local custodianship important?
Local custodianship is crucial to retain digital assets within Canada, fostering the domestic financial ecosystem and improving compliance with regulatory standards.
What is the future vision for Balance?
Balance aims to set a regulatory-compliant path to become a leading provider of digital asset custodianship in Canada, enhancing the overall market for digital asset management.
