Canada’s first commission-free cryptocurrency brokerage, Newton Crypto partnered with a third-party custodian to implement additional financial controls to secure customer funds, according to a press release Wednesday.
Newton reached an agreement with Balance, a digital assets custodian to hold and secure its customers’ digital assets, providing a wallet for all Newton’s users. The idea will allow cryptos they hold to compete with other commodity asset classes, like oil or gold.
Acting as a third-party custodian, Balance will provide rigorous financial controls, transparent business practices, and regulatory supervision for the local digital asset ecosystem. “Ensuring the security of our customers’ assets is a top priority,” said Newton’s CEO, Dustin Walper.
While commenting on the reason behind the development, the CEO also said: “We know that some customers are concerned that what happened at Quadriga last year could happen again, and we want them to rest assured that it can’t happen at Newton.”
Newton believes that the partnership with the Canadian custodian is a very significant step in preparing for anticipated regulations aimed at preventing the reoccurrence of next QuadrigaCX, where the exchange’s CEO purportedly died without revealing the private keys to the exchange’s crypto funds.
The move by Newton reportedly ensures that customers will no longer need to have a better knowledge of digital currencies in order to purchase and store them safely.
“The transparency and security that an independent custodian offers will allow our customers to feel confident in the safety of their investment,” Walper added.
Third-party custody of funds is soon going to be a new mandatory standard for the Canadian digital currency industry, the report suggests, saying regulators traditionally demand that commodities should be separated between broker and custodian.
Already, Canadian regulators hinted that they would likely require cryptocurrency brokerages or exchanges to store assets with an approved third-party custodian.
Newton noted in that regard that they chose Balance due to the firm’s proactive engagement with Canadian regulators since its inception, being closest to offer controls and standard as a qualified custodian in the traditional asset space.