Canadian crypto custodian Balance this year facilitated a “pioneering transaction” in Alberta, the financial technology firm has unveiled.
Using Bitcoin as collateral, the fintech enabled someone to purchase a vehicle from Shift Happens Auto Sales, a tech-forward used vehicle dealership based in Airdrie.
Shift Happens was established last year as a “Bitcoin-native dealership” that provides flexible financing to individuals with limiting credit histories.
The company sought to introduce a new option for a particular client who did not want to liquidate their Bitcoin in order to complete the transaction.
Finding a solution that eliminated counterparty risk was a novel challenge, according to Balance, which provided Shift with custodial and escrow services through its institutional-grade infrastructure.
“This transaction shows that digital assets can function as practical financial instruments in everyday commerce when the right safeguards are in place,” stated George Bordianu, a cofounder of Balance who serves as chief executive officer of the fintech.
Bitcoin was held in Balance’s offline storage, where the collateral remained securely until conditions set forth in the Escrow Agreement were satisfied.
Upon fulfillment, Balance is releasing the Bitcoin in 12 monthly fiat tranches as instructed by the buyer per pre-authorized written instructions.
The transaction was a first within Alberta, according to Bordianu.
“By providing secure custody and escrow, we enabled both parties to focus on the deal itself, knowing that the Bitcoin collateral was held safely and released according to agreed terms,” he remarked.
The process complied with Canadian regulatory frameworks governing digital assets, including compliance with CSA and FINTRAC mandates.
Wesley Craik, who serves Shift Happens as Director, says the dealership is “committed to finding creative, customer-friendly ways to make vehicle ownership possible.”
“While we accept Bitcoin, this was the first time we’d used it as collateral for an auto loan,” he explained. “Balance’s role as a neutral third party made the idea possible and easy to execute; the process was smooth, compliant, and delivered exactly what was promised.”
The success sets a precedent for expanding digital asset–backed transactions across industries, according to a statement from Balance.
As more assets become tokenized, the company believes that its custody-first, escrow-backed framework can enable safe and compliant adoption of novel use cases.
In July, for example, Balance worked with Bow Valley Credit Union and Calgary-based Bull Bitcoin on the Bitcoin Gateway—a platform that enables members to buy Bitcoin directly from their existing credit union accounts.
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