Balance Registers as Canada’s Second Qualified Digital Asset Custodian

Balance, the oldest and largest digital asset custodian in Canada, announced that it has attained qualified custodian status. Its subsidiary, Balance Trust Company, is now registered as a special purpose trust under the Loans and Trusts Corporations Act (Alberta) with Alberta’s Treasury Board and Finance (ATBF). This makes the startup the second-ever registered qualified custodian for crypto assets in Canada, with Tetra Trust as the first.

Founded in 2017, Balance serves as a digital asset custodian, storing and managing cryptocurrencies and other digital assets for clients, including crypto exchanges, neobanks and private funds from Canada, the US, the British Virgin Islands, and the Cayman Islands. This January, the startup moved its headquarters and core business from Toronto to Calgary. George Bordianu, Balance’s CEO, explained that Alberta’s friendly regulatory environment contributed to the decision to relocate. This aligns with how Alberta’s innovation minister has promoted the province as a crypto hub in recent years. In particular, the province’s special-purpose regime for provincial trusts allowed Balance to attain its qualified status without needing to meet regulatory requirements for services that it does not perform, such as the deposit-taking business.

Two years and $10 million of regulatory capital later, Balance’s registration as a qualified custodian is a game changer for the Canadian crypto ecosystem. For years, Canadian asset managers and crypto trading platforms (“CTPs”) have had to rely on American digital asset custodians, such as Coinbase and Gemini, to manage their cryptocurrencies. In fact, over $5 billion worth of crypto assets from Canadian public exchange-traded funds and CTPs have been sent to these US firms for safekeeping. Now, Balance provides a local alternative for Canadians who want to keep their digital assets within Canada. This opens the door for local firms to manage their assets domestically, paving the way for a more robust and self-sufficient crypto industry in Canada.