Custody Clarity: Tetra’s Role in Digital Asset Security
You’ve probably heard us mention that Tetra is Canada’s first and only trust company licensed to custody digital assets. But what does that mean?
As a licensed digital asset custodian, our role extends beyond just safekeeping. We ensure compliance with regulations and provide a secure environment for your digital investments. In this dynamic crypto landscape, we’re here to ensure your digital assets are managed with the utmost security and expertise. Let’s dive into some of our commonly asked questions:
What is Custody?
Think of crypto custody as a secure vault for your digital assets. It’s a service primarily for institutional investors or individuals with large crypto holdings, providing an extra layer of security. At Tetra, we ensure that your digital currencies are not just safe, but also readily accessible when you need them.
What are Crypto Holdings?
Simply put, crypto holdings are the digital assets you own and manage. These could range from well-known cryptocurrencies like Bitcoin and Ethereum, to other emerging digital assets like NFTs. In fact, at Tetra, we support over 6000 different digital assets.
What is a Qualified Custodian?
A qualified custodian, like Tetra, refers to a financial institution that meets specific criteria for safeguarding an investment fund’s assets. National Instrument 81-102 (NI 81-102) is the set of regulations implemented by the Canadian Securities Administrators (CSA) to govern the investment fund industry in Canada. NI 81-102 outlines the criteria to become a qualified custodian, which involves a regulated entity meeting certain infrastructure, controls, and financial stability requirements. The role of a qualified custodian is crucial in the digital asset industry, where asset security is paramount.
In Canada, being a qualified custodian also means ensuring compliance, and adhering to stringent regulatory standards set by financial authorities to ensure the highest level of security and trustworthiness.
As a qualified custodian, Tetra is audited by leading third-party financial and security audit firms. Additionally, we have completed our SOC 2 Type 2 audit and conduct proof of reserves bi-annually, ensuring your assets are protected and secure.
This strategic approach to custody services ensures that investors, whether individual or institutional, can manage their digital asset portfolios with confidence and ease, knowing that their investments are in safe and capable hands.
What Types of Clients Does Tetra Typically Serve?
We serve a diverse client base across the digital asset industry, including:
- Institutional Investors and Asset Managers: We cater to institutional clients such as pension funds, exchange traded funds, and hedge funds. These clients often require sophisticated custody solutions for large-scale digital asset portfolios.
- Trading and Exchange Platforms: We provide services to trading platforms and cryptocurrency exchanges that need reliable and secure custody of digital assets, ensuring the safety of assets traded and held on their platforms.
- Family Offices: Our services are tailored to meet the needs of family offices looking to diversify their investment portfolios with digital assets. We offer them the security and expertise needed to manage these investments effectively.
- Market Makers & Liquidity Providers: We work with market makers and liquidity providers in the crypto market, offering them secure storage solutions and efficient access to their assets for market operations.
- Corporate Entities & High-Net-Worth Individuals: Corporate clients and individuals with significant wealth find our custodial services beneficial for managing their substantial digital asset holdings, ensuring both security and compliance.
- Miners: We also serve cryptocurrency miners who require secure storage for their mined digital assets. Our services for miners ensure the safekeeping of their assets while maintaining ready access for transactions or exchanges.
What Digital Assets Do Institutions and Other Clients Buy?
Institutions are increasingly interested in a diverse range of cryptocurrencies. While Bitcoin and Ethereum remain popular, we’re seeing growing interest in altcoins and even tokenized real world assets.
How Can I Work With Tetra?
To explore how Tetra can elevate your digital asset management experience, please reach out to us at sales@tetratust.com.
We hope this clears up some of the crypto custody fog! Whether you’re a seasoned investor or just starting out, feel free to reach out for guidance on navigating the digital asset landscape.
Let’s make your crypto journey secure and successful.
Tetra Trust Company
