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Balance Achieves $2 Billion in Assets Under Custody Amid Crypto Market Recovery
Balance, a digital asset custodian based in Canada, has revealed that it has once again achieved $2 billion in assets under custody (AUC) amid the recent recovery in crypto markets. The company’s CEO, George Bordianu, expressed gratitude to the team for their hard work and unwavering commitment to their clients in rebuilding to $2 billion in AUC.
Challenges and Resurgence
George Bordianu, the CEO of Balance, acknowledged the challenges faced during the bear market of 2022, which caused the company’s AUC to drop from a peak of $2.5 billion to a low of $500 million. With Bitcoin’s value more than doubling over the past year and crossing $1 trillion in market cap, Balance has seen a resurgence in its crypto assets, with clients now exploring new products and offerings.
Canada’s Oldest Crypto Asset Custodian
Established in 2017, Balance claims to be the oldest and largest digital asset custodian in Canada. The company provides storage services for crypto assets to various entities across Canada, as well as in some US states, the British Virgin Islands, and the Cayman Islands. Its clientele includes crypto exchanges, neobanks, and private funds.
Industry Compliance
During the 2022 market crash, Balance underwent a Systems and Organization Controls (SOC) 2 Type I audit, which is considered a crucial industry benchmark in the crypto space. The audit, conducted amid market downturn, enabled Balance to serve investment dealers, mutual fund dealers, and portfolio and investment fund managers.
Headquarters Relocation to Calgary
In January, Balance relocated its headquarters from Toronto to Calgary, citing Alberta’s regulatory framework as a compelling reason for the move. Bordianu said Alberta’s regulatory environment offers the necessary structure for Balance to become a qualified custodian without being burdened by regulatory requirements unrelated to its operations, such as deposit-taking.
Surge in Assets Under Custody (AUC)
Aside from Balance, other digital asset custody firms have also seen a spike in their assets under custody. For example, Korea Digital Asset (KODA), the largest institutional crypto custody service in South Korea, experienced a remarkable growth in crypto assets under its custody.
KODA, which was established through a collaboration between major Korean bank KB Bank, crypto venture capital firm Hashed, and blockchain tech firm Haechi Labs, said that the value of these assets reached approximately 8 trillion Korean won ($6 billion) by the end of last year. This was a substantial increase from the 2.3 trillion won recorded at the end of June 2023.
Meanwhile, institutional investors in the US have turned to spot Bitcoin ETFs in order to get exposure to the booming crypto sector. As reported earlier, daily spot Bitcoin ETF trading volume amounted to nearly $2 billion, the highest level since the first day of trading on January 11.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
