Balance, a leading digital asset custodian based in Canada, has announced that it has reached $2 billion in assets under custody (AUC) once again, following a recent upswing in the crypto markets.
The resurgence in Balance’s AUC can be attributed to the significant growth in Bitcoin’s (BTC) value, which has more than doubled in the past year, surpassing $1 trillion in market capitalization. This milestone has prompted clients to explore new products and offerings, as highlighted in a recent press release by the company.
Despite facing challenges during the bear market of 2022, when Balance’s AUC dropped from $2.5 billion to $500 million, CEO George Bordianu expressed gratitude for the team’s efforts in rebuilding to $2 billion. This achievement reflects their hard work and dedication to serving clients in the crypto industry.
Established in 2017, Balance prides itself on being Canada’s oldest and largest digital asset custodian. The company offers storage services for crypto assets to a diverse range of entities across Canada, as well as in select US states, the British Virgin Islands, and the Cayman Islands. Its clientele includes crypto exchanges, neobanks, and private funds.
Amid the 2022 market crash, Balance underwent a Systems and Organization Controls (SOC) 2 Type I audit, a crucial industry benchmark in the crypto space. This audit allowed Balance to cater to investment dealers, mutual fund dealers, and portfolio and investment fund managers, strengthening its position as a trusted custodian.
In January, Balance relocated its headquarters from Toronto to Calgary, citing Alberta’s favorable regulatory framework as a key factor in the decision. Bordianu emphasized that Alberta’s regulatory environment provides the necessary structure for Balance to operate as a qualified custodian without unnecessary regulatory burdens.
Furthermore, the surge in assets under custody is not unique to Balance, as other digital asset custody firms have also experienced growth. For example, Korea Digital Asset (KODA), the largest institutional crypto custody service in South Korea, reported a significant increase in the value of assets under its custody, expanding by nearly 248% in the second half of 2023.
Additionally, institutional investors in the US have turned to spot Bitcoin ETFs to gain exposure to the thriving crypto sector. Recent data shows a surge in daily spot Bitcoin ETF trading volume, reaching nearly $2 billion, signaling increased interest and investment in the crypto market. Spot Bitcoin ETFs have witnessed substantial inflows, further indicating growing confidence in the digital asset landscape.
