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Tetra Trust

Do You Know How Your Digital Assets Are Safeguarded?

February 9, 2023 by Didier Lavallée Leave a Comment

Are your digital assets safe? Is the crypto trading platform you use functional, viable and regulated? Are you able to access your digital assets at any time?

These are important questions Canadian investors need to be asking about the digital assets or cryptocurrencies they hold. 

The act of investing in digital assets is under intense scrutiny and has been challenged recently due to events such as the FTX exchange collapsing and Gemini’s ongoing regulatory issues in the U.S. market. There are reports of ongoing issues for companies operating in the crypto space. 

Confidence and trust in market participants around the world have been shaken in recent months. Investors and institutions have questions. This includes discussion around the security of digital assets when they are stored with a third party.

A Qualified Custodian provides Security for Crypto Investments

The value proposition for a dependable, trustworthy and properly governed qualified custodian to care for an investor’s digital assets has never been stronger. 

Digital asset custody is the process of safeguarding and storing assets such as cryptocurrencies, tokens, and other forms of digital property. The custody solution chosen by an investor or an institution is a critical aspect of their investing in digital assets, as it helps to protect against losses due to theft, fraud, or other types of cyberattacks. 

As Canada’s only qualified custodian for digital assets, Tetra Trust follows strict guidelines set out by regulators to ensure our clients’ digital assets are safe and accessible. We deliver institutional-grade custody solutions specifically built for Canadian investors and institutions. 

Given that the safety and security of digital assets are top of mind, we highlight three key issues for parties to consider and question when investing in digital assets in Canada.

#1: Know the difference Between Qualified and Non-Qualified Custodians

In Canada qualified custodians are regulated by provincial or territorial securities legislation, while non-qualified custodians are not. 

Qualified custodians are licensed to provide trust or investment services, and follow rules set out by the local regulatory body. They are subject to regular audits and reviews as part of their registration process. This is sometimes referred to as “regulated custody” due to the regulatory approvals that underpin these companies’ operations. 

Non-qualified custodians do not have to abide by the same regulations as qualified ones, but may still be subject to other rules such as anti-money laundering laws. Non-qualified custodians may offer more flexibility when it comes to fees and services provided. However, they often lack the security features, governance and insurance coverage of qualified custodians, so it is important to research any non-qualified custodian before taking on their services.

#2: Canadian Investors should keep their Digital Assets in Canada

Perhaps the single most important element from an investor protection point of view, keeping digital assets in Canada minimizes risks for Canadian investors and institutions and does so in several ways. 

Primarily, it ensures the assets are subject to the same legal and regulatory protections afforded to other forms of property within the jurisdiction. This can be especially beneficial if there are disputes or other legal issues arise with an asset. Over the years, Canadians have seen examples of domestic assets being locked in U.S. litigation so it would be a foolish assumption to think digital assets would be treated any differently. 

So while maintaining digital assets within Canada can provide some measure of comfort for investors, it can also help those who want to avoid potential delays or complications due to currency exchange fluctuations or overseas regulations. 

Bottom line, when investing domestically and relying on a Canadian custody solution like Tetra Trust, investors can have greater assurance everything will go as planned without unexpected surprises.

#3: Use Custody Diversification when investing in Digital Assets

Custody diversification is an important element of securely storing crypto currency. Diversification eliminates the risk associated with storing all of one’s assets in a single wallet or custody solution. Recent company failures in the space have highlighted the risks of holding all assets in one custody solution, as this creates one single point of failure.

By having funds held in multiple wallets with different providers, investors and institutions can reduce the risk of loss or theft due to malicious attacks, human error or technical issues. Additionally, by using different custodians and wallets investors can take advantage of the unique features that each one offers. For example, some providers may offer insured accounts with insurance against hacks, while others may offer better security features such as multi-signature setups. 

Custody diversification enables an investor to spread out the risk, giving more flexibility in case of emergencies.

Tetra Trust can help investors achieve custody diversification as we work with multiple providers such as Coinbase, Ledger, Fireblocks and Knox. These partnerships mean Tetra Trust can provide a diversified best-in-class custody solution.

Perfect Time for Investors to Evaluate Approach and Manage Risk

While the current downturn should be considered temporary, it’s also an opportunity for investors and institutions to reflect on their investment approach and risk management practices. 

We believe the issues noted above are vital ones to consider when investing in digital assets in Canada. 

Working with a qualified custodian such as Tetra Trust can ensure the custody solution an investor or institution chooses is dependable, trustworthy and won’t be subject to extraterritorial issues. The investor benefits from a robust control framework and governance model underscored by multiple checks and balances. 

The result can be something all investors are seeking with their digital assets right now – peace of mind.

Didier Lavallée is CEO of Tetra Trust Company, Canada’s only regulated digital assets custodian. He joined Calgary-based Tetra in April 2022 after a decade with RBC. Lavallée is a featured presenter at digital asset conferences and regular commentator on industry issues.

Filed Under: Thought Leaders Tagged With: Tetra Trust

Q+A with Tetra’s Steve Oliver on How Regulations Spur Innovative Compliance Solutions for Digital Assets

December 13, 2022 by Robert Lewis Leave a Comment

Stephen Oliver is the Chief Compliance Officer for Tetra Trust Company, a Calgary-based regulated digital assets custodian serving the Canadian market. Steve is also an instructor at the University of Calgary, where he lectures on corporate governance. [Read more…] about Q+A with Tetra’s Steve Oliver on How Regulations Spur Innovative Compliance Solutions for Digital Assets

Filed Under: Interviews Tagged With: Tetra Trust

MeetAmi Partners With Tetra Trust To Offer Compliant Digital Asset Wealth Management

December 7, 2022 by Robert Lewis Leave a Comment

Calgary’s Tetra Trust and Vancouver’s MeetAmi are partnering to offer a turnkey solution to Canada’s wealth management market, offering the ability to invest in Digital Assets and hold the asset base with a qualified Canadian custodian. [Read more…] about MeetAmi Partners With Tetra Trust To Offer Compliant Digital Asset Wealth Management

Filed Under: News Tagged With: MeetAmi, Tetra Trust

Q+A with Accelerate CEO on how Investors can Invest Safely in NFTs

November 21, 2022 by Rahil RJ Jamal Leave a Comment

Julian Klymochko is founder and CEO of Accelerate Financial Technologies, a fast growing alternative investment solution provider. The Calgary-based firm announced an NFT Fund for investors earlier this year and recently purchased several new “blue chip” NFTs. [Read more…] about Q+A with Accelerate CEO on how Investors can Invest Safely in NFTs

Filed Under: Interviews Tagged With: Accelerate Financial, Tetra Trust

Accelerate Promotes NFT Fund With Heightened Focus On Security For Investors

November 16, 2022 by Robert Lewis Leave a Comment

The current crypto crash and burn for FTX isn’t slowing down all parties in the Web3 world. Some companies are taking the time to remind investors of their digital asset products, but with an extra focus on how they are kept safe, secure and can be reliably withdrawn. [Read more…] about Accelerate Promotes NFT Fund With Heightened Focus On Security For Investors

Filed Under: News Tagged With: Accelerate Financial, Tetra Trust

Calgary’s Bitvo Dodges Bullet with Stalled FTX Acquisition due to Canada’s Strong Regulatory Environment

November 14, 2022 by Robert Lewis Leave a Comment

Last summer Fintech.ca reported that crypto asset trading platform Bitvo was being acquired by FTX, the world’s 5th largest crypto exchange. [Read more…] about Calgary’s Bitvo Dodges Bullet with Stalled FTX Acquisition due to Canada’s Strong Regulatory Environment

Filed Under: News Tagged With: Bitvo, FTX, Tetra Trust

Tetra Trust Announced as Custody Partner for Coinsquare’s IIROC-Approved Crypto Trading Platform

October 19, 2022 by Fintech Newsdesk Leave a Comment

Calgary’s Tetra Trust announced today that they have partnered with Coinsquare to provide their 500,000+ users with safe and secure custody services for their crypto assets. [Read more…] about Tetra Trust Announced as Custody Partner for Coinsquare’s IIROC-Approved Crypto Trading Platform

Filed Under: News Tagged With: Coinsquare, Tetra Trust

Coinsquare Becomes Canada’s First Crypto-Asset Trading Platform Registered as an Investment Dealer

October 12, 2022 by Robert Lewis Leave a Comment

Canada’s longest operating crypto asset trading platform has had its dealer registration and membership approved by the Investment Industry Regulatory Organization of Canada (IIROC). [Read more…] about Coinsquare Becomes Canada’s First Crypto-Asset Trading Platform Registered as an Investment Dealer

Filed Under: News Tagged With: Coinbase, Coinsquare, Tetra Trust

3iQ, Tetra Trust and Coinbase Join Forces to Advance Crypto ETP Space in Canada

September 21, 2022 by Robert Lewis Leave a Comment

Toronto’s 3iQ Digital Asset Management (3iQ) has struck a partnership with Calgary’s Tetra Trust and Coinbase aimed at expanding the exchange-traded product (ETP) ecosystem for digital assets in Canada and generating new interest from the investment community. [Read more…] about 3iQ, Tetra Trust and Coinbase Join Forces to Advance Crypto ETP Space in Canada

Filed Under: News Tagged With: 3iQ, Coinbase, Tetra Trust

Q+A with Tetra Trust’s CEO Didier Lavallée on being Canada’s First Qualified Custodian for Digital Assets

August 8, 2022 by Robert Lewis Leave a Comment

Didier Lavallée is an accomplished financial services executive with experience in the capital markets and custody sectors with companies such as RBC, UBS and Genuity Capital Markets. [Read more…] about Q+A with Tetra Trust’s CEO Didier Lavallée on being Canada’s First Qualified Custodian for Digital Assets

Filed Under: Interviews Tagged With: Tetra Trust

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