Balance Gains Custodian Status, Aims to Repatriate

Balance, Canada’s long-standing crypto custodian, has achieved qualified custodian status. With CEO George Bordianu calling for Canada’s crypto ETFs to shift their holdings back to domestic custody. Currently, crypto assets backing ETFs by firms like 3iQ, Purpose Investments. And Evolve are primarily stored in U.S. custodial institutions such as Coinbase and Gemini.

“We have billions worth of retail assets in Canada’s crypto ETFs that sit in the United States,” Bordianu told CoinDesk. “We’d like to bring those assets back home.” By managing assets domestically, Balance aims to simplify custody arrangements, reduce costs, and foster an easier path for new ETF and mutual fund issuances within Canada.

Balance’s Edge: Technology and Independence

Bordianu emphasizes that Balance’s custodial capabilities are built on an in-house technology stack without relying on sub-custody partnerships or third-party solutions like Fireblocks or Digital Vault. This autonomy, Bordianu argues, differentiates Balance in a market where most custodians leverage external technology.

By keeping everything in-house, Balance claims a more efficient and secure platform for holding Canadian retail assets.

Building Canada’s Crypto Infrastructure

Bordianu believes that, while Canada’s crypto ETF holdings may seem modest today. Growth in tokenized real-world assets and stablecoins underscores the importance of developing Canadian-based infrastructure for digital 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,” Bordianu said. “If you put it in those terms, it sounds absolutely bonkers.”

With this milestone, Balance aims to support the expansion of Canada’s crypto sector by creating a self-sustaining framework that encourages asset managers to bring investments back within national borders. This shift could strengthen Canada’s position in the digital asset space, establishing it as a safe. Regulated environment for crypto fund management.