A new Canadian financial technology startup is entering the currently chaotic crypto market.
Marking its official launch today, Toronto-based fintech Beaver Bitcoin is a non-custodial exchange allowing Canadians to set up automated weekly bitcoin purchases.
Beaver says this method of acquiring an asset—commonly referred to as “dollar cost averaging”—is a popular buying strategy that avoids speculation in a volatile market.
“The goal of an automatic weekly purchase is simple: accumulate more bitcoin over time,” the startup states. “Get ahead of inflation by storing your wealth using the hardest money the world has ever seen.”
Beaver’s chosen method of delivering bitcoin to customers “adheres to Bitcoin’s core value of self-custody and eliminates the risks associated with custodial exchanges,” according to a statement from the fledging fintech.
“We’ve seen how custodial exchanges can misuse customer funds to engage in highly risky trades,” says founder Aubrey Jesseau. “When these exchanges collapse and declare bankruptcy, customers lose everything.”
A recent—in fact, current—example is the FTX fiasco, which has triggered a serious chain of notable bankruptcies among major cryptocurrency exchanges and custodians, including well-funded and insured brands such as New Jersey’s BlockFi.
Scandals aside, Canadians are still quite curious about crypto.
“We see an opportunity to serve Canadians in a way that existing platforms and exchanges have not,” affirms Jesseau. “We’ve streamlined the experience of buying bitcoin, making it accessible to the next wave of bitcoin adopters in Canada.”
Beaver’s non-custodial exchange operates by delivering bitcoin to a wallet address controlled by the customer immediately upon purchase; the exchange “never holds bitcoin on behalf of the customer,” the startup claims.
For now, the minimum weekly purchase amount is $100. And as for fees, Beaver charges $3 plus 1% per transaction.
“We understand this might be high for some people,” admits Jesseau of the weekly minimum, “and we will look to lower this amount as we grow our business.”
Until the end of the year, users can try the service for free, he notes.