Tetra and Knox To Lay New Foundation for Canadian Crypto Custody

Cryptocurrency custody firm Knox will be joining forces with Tetra Trust Company, which is a qualified custodian in Canada. The two entities will be joining forces to create a trusted, top-level custody solution for the Canadian market.

The partnership will see Tetra’s regulated status and Knox’s cryptocurrency custody expertise come together to offer institutional clients an insured custodial solution. The long-term goal of this agreement is to bring back the billions of dollars in digital assets sitting outside of Canada.

Knox CEO Alex Daskalov stated in an email that this is not an acquisition of Knox even though Tetra Trust will be acquiring several of Knox’s custodial stack to be activated under the Tetra Trust roof.

Knox will continue as an independent entity which will pursue its core objective of giving institutional-grade custodial technology and insurance coverage an upgrade. Currently, Knox is the only Canadian custody solution with a SOC 2 Type 2 certification.

The custody solution will be offered by a “qualified custodian”, following the definition defined under National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations.

The solution will also be offered as a “custodian” under National Instrument 81-102 Investment Funds.

The demand for cryptocurrency custody services in Canada has been growing at an impressive rate as institutional clients continue to invest in and transact with digital currencies. However, Canadians have had to rely on US providers and unregulated custodians up until this point.

As such, the institutional market and regulatory bodies in Canada have been highlighting the need for an enhanced custody offering in the cryptocurrency space, and for Canadian-based solutions to be made available.