Canadian Cryptocurrency Custody Company Balance Reports Assets Surpassing $2 Billion During Market Rebound

Balance, a digital asset custodian located in Canada, has announced that it has once again reached $2 billion in assets under custody (AUC) following the recent rebound in cryptocurrency markets.

With Bitcoin’s (BTC) price more than doubling in the last year and surpassing a $1 trillion market capitalization, Balance has experienced a revival in its crypto assets, with clients now investigating new products and services, the company stated in a recent press release.

George Bordianu, the CEO of Balance, recognized the difficulties encountered during the 2022 bear market, which led to a decline in the company’s AUC from a high of $2.5 billion to a low of $500 million.

“I’m thankful our team rose to the occasion, and rebuilding to $2 billion in AUC is a reflection of their dedication and steadfast commitment to our clients,” he remarked.

Balance is Canada’s Longest-Standing Crypto Asset Custodian

Founded in 2017, Balance asserts that it is the oldest and largest digital asset custodian in Canada.

The firm offers storage solutions for crypto assets to various organizations throughout Canada, as well as in select US states, the British Virgin Islands, and the Cayman Islands.

Its client base includes cryptocurrency exchanges, neobanks, and private investment funds.

. @balance_canada surpasses $2B of assets under custody.

“Our focus since day one has been to build a world-class custodian for companies working with digital assets. We rejected vending ready-made solutions and instead built our offline and warm infrastructure entirely… pic.twitter.com/UHz5Cb0k55

— Balance (@balance_canada) February 22, 2024

During the market downturn in 2022, Balance completed a Systems and Organization Controls (SOC) 2 Type I audit, which is regarded as an essential industry standard in the cryptocurrency sector.

This audit, conducted during the market decline, allowed Balance to cater to investment dealers, mutual fund dealers, and portfolio and investment fund managers.

In January, Balance moved its headquarters from Toronto to Calgary, citing Alberta’s regulatory framework as a significant factor for the relocation.

Bordianu noted that Alberta’s regulatory landscape provides the necessary framework for Balance to qualify as a custodian without being encumbered by regulatory obligations unrelated to its core operations, such as deposit-taking.

Crypto Custody Firms Experience Increase in AUC

In addition to Balance, other digital asset custody firms have also reported an increase in their assets under custody.

For instance, Korea Digital Asset (KODA), the largest institutional crypto custody service in South Korea, has experienced significant growth in the crypto assets it holds.

Recently, the company disclosed that the value of these crypto assets under its custody surged by nearly 248% in the latter half of 2023.

KODA, which was established through a partnership between major Korean bank KB Bank, crypto venture capital firm Hashed, and blockchain technology company Haechi Labs, indicated that the value of these assets reached approximately 8 trillion Korean won ($6 billion) by the end of last year.

This marked a considerable rise from the 2.3 trillion won recorded at the close of June 2023.

Meanwhile, institutional investors in the US have turned to spot Bitcoin ETFs to gain exposure to the thriving crypto market.

Earlier this week, daily trading volume for spot Bitcoin ETFs reached nearly $2 billion, the highest since the initial trading day on January 11.

As previously reported, spot Bitcoin ETFs saw a significant influx of around $2.3 billion last week, nearly doubling the prior week’s inflow of $1.2 billion.

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