Toronto’s Wellfield Technologies announced today it has agreed to acquire Ottawa-based crypto custodian Brane for just under $10 million. Wellfield is traded on the TSX Venture Exchange.
Regulatory trends in Canada and around the world point to the growing importance of qualified custody in the digital asset sector.
Incorporated in 2021, Brane Trust is in the process of registration with the Alberta Government, which, once completed, will result in Brane Trust becoming a regulated custodian for digital assets. Currently, Calgary’s Tetra Trust is the only qualified crypto custodian in Canada.
Under Wellfield’s ownership, Brane Trust will continue the process to become a “qualified custodian” as such term is defined in National Instrument 31-103 – Registration Requirements, Exemptions and Ongoing Registrant Obligations, and National Instrument 81-102 – Investment Funds, enabling Brane Trust to provide industry-leading, regulated custody for crypto asset trading platforms and exchange-traded funds (ETFs).
According to today’s announcement, Brane Trust will operate independently under Wellfield’s ownership, with a board of directors dedicated to ensuring custodial best practices, including protection of client assets through regulatory compliance, strict segregation of duties, and secure technology.
“Our new relationship with Wellfield will build on the extensive work we’ve done to establish Brane Trust as a trusted, independent custodian for digital assets,” said Matt Pierce, President of Brane Trust.
“We look forward to setting a new industry standard for excellence in safeguarding digital assets, while realizing new opportunities through Wellfield’s commitment to research, development, and innovation.”
Last year Wellfield acquired Israel-based Coinmama giving Wellfield the largest user base of any publicly traded DeFi company. Founded in 2013, Coinmama has built a global platform for millions of buyers and sellers of digital currencies using everyday payment methods.