From powering cryptocurrencies like bitcoin to digital assets like non-fungible tokens (NFTs), blockchain technology is gaining traction and drawing investor interest.
Investors willing to dip their toes into blockchain technology are hoping to generate strong returns by investing in digital assets like GIFs and artwork.
With stories of NFTs being stolen becoming more and more common, keeping digital assets safe and secure is a priority.
ETFs like Accelerate’s NFT Fund in the crypto space have typically used American or international options for their custody needs.
But not for their new fund. Accelerate has turned to fellow Calgary startup Tetra Trust to custody Accelerate’s digital assets so that they are stored and settled within a secure environment.
Tetra is the first Qualified Custodian for cryptocurrency in Canada and in partnership with Montreal-based Knox Custody, Tetra is able to offer the first institutional-grade custody solution for NFTs.
Accelerate is changing that by using Tetra for this fund which will own a diversified portfolio of “blue chip” NFTs, including collections such as CryptoPunks and Bored Ape Yacht Club, and has plans to use Tetra for their other crypto funds.
“We are very pleased to enter into an agreement with Tetra Trust to offer institutional-caliber custody of our digital assets, including for our new NFT fund,” said Julian Klymochko, Founder and CEO of Accelerate.
“Safe storage is paramount when investing in NFTs and Tetra’s custody solution provides clients with absolute confidence in the security of their digital assets.”
Tetra is looking to grow and service institutional clients like Accelerate who require secure, reliable custody for their digital and cryptocurrency assets. With billions of dollars worth of Canadian crypto sitting with American custodians because of the historic lack of adequate Canadian options, Tetra is continuing its push into this market opportunity.
“Cryptocurrencies and digital assets such as NFTs are generating interest with investors who want such assets professionally managed, safe and secure, and fully compliant with regulations,” said Didier Lavallée, CEO of Tetra Trust.
“Our custody solutions for investors provide all these features. We expect to provide custody for additional Accelerate digital asset offerings beyond the NFT fund as we further develop our relationship. Accelerate is a great partner with a strong background in this space as its management team also launched Canada’s first bitcoin fund in 2017.”
Lavallée recently migrated from the traditional finance space to the crypto industry, moving from RBC’s custody practice where he was Head of Custody Product.
The innovation being shown by companies like Accelerate and Tetra has captured the interest of government at the federal and provincial levels.
“The partnership between Accelerate and Tetra is very exciting, and is evidence of Alberta’s leadership in the crypto space,” said Nate Glubish, Minister of Service Alberta, a strong supporter of the digital assets sector.
“These two industry leaders are providing best-in-class products to Canadians, and I look forward to following along as they develop new investment products and provide more choice and convenience to those Albertans interested in the digital asset space.”