Balance Files Application for Special Purpose Trust Company in Canada
Balance, Canada's oldest and largest digital asset custodian, has taken a significant step towards becoming a qualified Canadian custodian. The company recently filed an application for a letters patent with Alberta's Treasury Board and Finance to incorporate a special purpose trust company. This move aims to address the lack of local options for digital asset custody in Canada and provide a built-in-Canada solution to the regulated market.
Addressing the Need for Local Custodians
Currently, Canadian restricted dealers and listed public funds rely on US-based custodians for the majority of their digital asset custody needs. This lack of local options has been a source of frustration for these firms. Balance's CEO, George Bordianu, acknowledges the demand for a Canadian custodian and states that the trust application is a crucial step towards fulfilling this need.
Building an End-to-End Solution
Balance has been serving various entities in the digital asset space for the past six years, including exchanges, trading desks, neobanks, and private funds. With over $1 billion worth of digital assets currently under custody, the company aims to provide an end-to-end solution for the regulated market in Canada.
In conclusion, Balance's application for a special purpose trust company marks an important milestone in bringing local digital asset custody options to Canada. This development is expected to address the frustrations of firms seeking Canadian custodians and provide a comprehensive solution for the regulated market.
Hot Take: Implications of Balance's Trust Company Application for New Businesses
Balance's move to become a qualified Canadian custodian by filing an application to incorporate a special purpose trust company could have significant implications for new businesses in the digital asset space. This development highlights the growing demand for local options for digital asset custody in Canada, which could open up new opportunities for startups in this sector.
Addressing Market Needs
The lack of local custodians has been a major pain point for Canadian restricted dealers and public funds. Balance's initiative signals to new businesses the importance of understanding and addressing specific market needs to gain a competitive edge.
Providing Comprehensive Solutions
Balance's aim to provide an end-to-end solution for the regulated market underscores the value of offering comprehensive solutions to customers. This could inspire new businesses to develop all-encompassing services that cater to the diverse needs of their target audience.
Localizing Business Operations
Balance's move to provide a built-in-Canada solution emphasizes the benefits of localizing business operations. This could encourage new businesses to consider local solutions that cater to specific regional needs and preferences.
In conclusion, Balance's trust company application offers valuable lessons for new businesses in understanding market needs, providing comprehensive solutions, and localizing business operations. This could shape the strategies of startups in the digital asset space and beyond.
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