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Balance Invests $10M to Launch Trust Company in Canada

Balance | Release | Jul 3, 2024

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Balance Commits $10 Million to Register Balance Trust Company

Balance, the biggest and oldest custodian of digital assets in Canada, has announced the incorporation of Balance Trust Company as a special purpose trust under the Loan and Trust Corporations Act (Alberta).  The company has committed $10 million in regulatory capital into a wholly-owned subsidiary.  By offering fiat custody, digital asset custody, collateral management, and escrow services, this new subsidiary hopes to qualify as a custodian in both the US and Canadian markets.

See:  Balance Commits to Alberta, Relocates to Calgary

This milestone follows over a year of meticulous preparation, including financial audits, SOC 2 Type 2 certification, and system penetration tests. Balance has also strengthened its insurance programs and added key leadership positions, including a CFO and Chief Compliance and Risk Officer.

Leadership and Governance

The board of directors of Balance Trust Company comprises industry veterans:

  • George Bordianu: Co-founder, President, and CEO of Balance.
  • Alex McDougall: Co-founder and CIO of Bicameral Ventures, President and CEO of Stablecorp.
  • James Slazas: Founding partner and CEO of DARMA Capital.
  • Colin Pyle: EVP of Strategy and Corporate Development at RFA Capital Holdings.
  • Jean Desgagné: Former President and CEO of the Canadian Depository for Securities (CDS).

Significance of Milestone

Setting up the Balance Trust Company is an important milestone for several reasons:

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  1. Balance is now in a position to provide really localized services in the Canadian market, reducing the dependency on the US for tech and custodians.
  2. At the moment, Balance uses its digital asset custody solutions to safeguard assets valued at over $2.5 billion.  Once the Balance Trust Company is registered, Balance will expand to offer fiat custody, collateral management, and escrow services.
  3. By becoming a qualified custodian in both the US and Canada, balance will surely expand it's footprint in regulated North American markets.

George Bordianu, co-founder and CEO of Balance:

“Canadian regulated entities are still forced to this day to use US custodians or Canadian custodians leveraging US-based technology. We’re laser-focused on bringing a truly local solution to the ecosystem and are grateful to the team at the ATBF for their help and guidance in achieving this mission and for granting us this letters patent."

See:  Canada’s Proposed Mutual Fund Crypto Regulations 2024

Conclusion

Balance Trust Company will be able to assist investment broker-dealers, advisers, and issuers of public ETFs and mutual funds after it is registered and qualified as a custodian.


NCFA Jan 2018 resize - Balance Invests $10M to Launch Trust Company in CanadaThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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