Canada’s largest asset custodian this week unveiled a turnkey solution enabling clients to participate in yield generation workflows—such as staking, delegating, and pledging assets—through third-party partners of their choice.
Toronto-based Balance says that it has been running a closed pilot mode of its new product, dubbed Yield, since last May.
“Our pilot clients have generated yield on over $500 million worth of assets in the last 15 months, demonstrating the robustness of our approach,” affirms chief product officer Nuno Silva.
The Canadian financial technology firm offers some examples of Yield, such as staking Ethereum through a staking services provider such as Attestant or Coinbase. Another would be pledging Filecoin to on-chain storage providers and earn network rewards.
“With MEV generation as the latest addition, the product offering is now complete,” added Silva. “We’re beyond excited to be able to offer this at large, just in time for Ethereum’s transition to proof-of-stake consensus.”
Balance states that you can retain full ownership and control of assets and rewards throughout the entire Yield workflow.
“Whereas most yield workflows involve relinquishing assets ownership and taking counterparty risk, we took the harder road and did the work to enable clients to maintain full ownership and control throughout the entire yield lifecycle,” explains chief executive officer George Bordianu. “This dramatically reduces risk without incurring additional costs.”
In its role as a custodian, Balance does not provide any staking, validation, or on-chain storage services itself. However, Balance says it ensures the blocks the staking partner proposes are compliant with OFAC and similar sanctions programs.
Founded in June 2017, the startup introduced its custody services in a closed pilot in August 2018. The public launch followed one year later, the first of its kind in Canada. Canadian competitors include Calgary’s Tetra Trust, Ottawa and Calgary-based Brane Capital, and Knox Custody.