Canada’s leading crypto custodian, Balance, has recently achieved qualified custodian status in the country. This milestone has prompted CEO George Bordianu to advocate for repatriating Canada’s ETF digital assets from sub-custody arrangements in the U.S., specifically with exchanges like Coinbase and Gemini.
According to Bordianu, billions of dollars worth of retail assets in Canada’s crypto ETFs are currently held in the United States. He believes that bringing these assets back to Canada would simplify the process, reduce costs, and facilitate the creation of more ETFs and mutual funds in the country.
Unlike other custodians that rely on third-party technology, Balance has developed its own technology stack, which has enabled the firm to become a qualified custodian independently. Bordianu emphasizes the importance of building a strong infrastructure in Canada to handle the growing crypto sector, especially with the rise of tokenized real-world assets and stablecoins.
In a recent interview with CoinDesk, Bordianu compared the situation to the Toronto Stock Exchange relying on a foreign infrastructure like the Depository Trust & Clearing Corporation in the U.S. for clearing and settling transactions. He believes that it is essential for Canada to have its own infrastructure to support the evolving crypto landscape.
As the crypto industry continues to expand in Canada, the repatriation of ETF assets could mark a significant step towards establishing a robust ecosystem for digital assets in the country. By bringing these assets back home, Balance aims to streamline operations, reduce costs, and encourage the growth of new investment products in the Canadian market.
Overall, Balance’s achievement as a qualified custodian and its efforts to repatriate ETF assets highlight the importance of developing local infrastructure to support the growing crypto sector in Canada. As the industry evolves, having a strong foundation for managing digital assets will be crucial for ensuring the long-term success and stability of the market.
