Balance, a long-established Canadian crypto custodian, has recently achieved qualified custodian status. This milestone marks a significant step towards bringing the safekeeping of Canadian-issued crypto ETFs back to domestic shores.
Previously, the underlying crypto assets of ETFs issued by 3iQ, Purpose Investments, and Evolve were held by U.S. exchanges like Coinbase and Gemini. Balance aims to change this by offering a homegrown solution for Canadian crypto ETFs.
CEO George Bordianu emphasized the importance of keeping Canadian crypto assets within the country. He stated, “We have billions worth of retail assets in Canada’s crypto ETFs that sit in the United States. We’d like to bring those assets back home.”
Bordianu highlighted that Balance’s qualified custodian status is a result of its proprietary technology stack, rather than relying on third-party solutions like Fireblocks or Digital Vault. This distinction underscores Balance’s commitment to providing a secure and independent platform for Canadian crypto ETFs.
The broader goal is to foster the growth of the crypto sector in Canada. Bordianu believes that as the market expands, with more tokenized assets and stablecoins, Canada needs a robust domestic infrastructure to handle these assets efficiently. He compared the current situation to a Canadian stock exchange relying on a foreign entity for clearing and settling transactions, highlighting the need for self-sufficiency.
October 2024, Cryptoniteuae
