Canadian Crypto Custodian Balance Seeks to Bring ETF Assets Back Home
Balance, a leading Canadian crypto custody specialist, has made significant strides this week by attaining qualified custodian status. This achievement marks a major milestone for the company, with CEO George Bordianu expressing his enthusiasm for bringing Canada’s ETF assets back from sub-custody arrangements in the United States.
According to Bordianu, it is high time for Canada to reclaim its position as the primary custodian of digital assets. He points out that currently, the safekeeping of crypto assets underlying funds issued by prominent ETF providers such as 3iQ, Purpose Investments, and Evolve ends up in sub-custody arrangements with blue-chip U.S. exchanges like Coinbase and Gemini. This situation not only raises questions about the security of these assets but also highlights the need for a more streamlined and cost-effective approach.
"We have billions worth of retail assets in Canada’s crypto ETFs that sit in the United States," Bordianu stated in an interview with CoinDesk. "We’d like to bring those assets back home. We’re trying to simplify the picture, to make it cheaper and a little bit easier for new asset managers to do a few more ETF and mutual funds in Canada."
Bordianu emphasizes that Balance does not rely on sub-custody partnerships due to its robust in-house technology stack, which serves as the foundation for its qualified custodian status. By leveraging this proprietary technology, Balance can provide secure and efficient custody solutions without the need for third-party providers such as Fireblocks or Digital Vault.
The implications of Balance’s achievement extend beyond the company itself, with significant implications for the growth and development of the crypto sector in Canada more broadly. Bordianu notes that while the amount of crypto collectively held in Canada’s ETFs may not seem substantial at present, the rapid expansion of tokenized real-world assets and stablecoins underscores the need for a domestic infrastructure capable of handling these innovative assets.
"It’s like saying the Toronto Stock Exchange should plug into the Depository Trust & Clearing Corporation in the U.S. to clear and settle all of their transactions through that foreign infrastructure," Bordianu pointed out. "If you put it in those terms, it sounds absolutely bonkers."
The Significance of Balance’s Qualified Custodian Status
Balance’s attainment of qualified custodian status serves as a testament to its commitment to providing top-notch custody solutions for the Canadian crypto market. By leveraging its proprietary technology stack, Balance can offer secure and efficient custody services that cater to the evolving needs of asset managers and investors.
Bordianu’s vision for Canada’s ETF assets is centered on simplifying the picture, making it cheaper, and easier for new asset managers to enter the market with innovative products such as ETFs and mutual funds. By bringing these assets back home, Balance aims to contribute to the growth and development of the Canadian crypto sector.
The Broader Implications of Balance’s Achievement
Balance’s achievement has far-reaching implications for the growth and development of the crypto sector in Canada more broadly. As Bordianu notes, the proliferation of tokenized real-world assets and stablecoins highlights the need for a domestic infrastructure capable of handling these innovative assets.
The Canadian government and regulatory bodies can learn from Balance’s success story and take steps to create a supportive environment for the growth and development of the crypto sector. This includes providing clear guidelines and regulations that foster innovation, while also protecting investors and ensuring the integrity of the market.
Conclusion
Balance’s attainment of qualified custodian status marks a significant milestone in its journey towards becoming a leading provider of custody solutions for the Canadian crypto market. By leveraging its proprietary technology stack and committing to bringing Canada’s ETF assets back home, Balance demonstrates its dedication to supporting the growth and development of the sector.
As the demand for tokenized real-world assets and stablecoins continues to rise, it is imperative that Canada develops a robust infrastructure capable of handling these innovative assets. Balance’s achievement serves as a beacon of hope, showcasing what can be achieved through innovation and commitment to excellence. As the Canadian crypto sector continues to evolve, Balance remains at the forefront, driving change and pushing the boundaries of what is possible in this rapidly expanding market.