Return of Canadian ETF Assets from the U.S.—New Custodian Status is the Key

Currently, Canada is focused on strengthening its own digital asset infrastructure. Recently, Canadian cryptocurrency custody specialist Balance achieved the long-awaited qualified custodian status in the country. This development has opened opportunities to repatriate millions of dollars worth of Canadian ETF assets from custody arrangements in the United States.

Qualified Custodian Status—A Change for Canadian Crypto Custody

Balance’s regulatory milestone represents a significant point in the industry. Until now, many Canadian cryptocurrency ETFs relied on sub-custody arrangements where the actual custody of digital assets was handled by American blue-chip exchanges like Coinbase and Gemini. While secure, this arrangement meant that Canadian retail assets were physically based in the United States.

George Bordianu, CEO of Balance, explained that the qualified custodian status gives their company the authority to bring back Canadian-owned crypto assets. “We have billions of dollars of retail assets stored on American soil,” he said. The new regulatory recognition is based on Balance’s self-developed technology stack, which outperforms third-party solutions like Fireblocks or Digital Vault.

Why Repatriate Assets to Canada

The strategic vision to bring back Canadian ETF holdings goes beyond mere regulatory compliance. Bordianu outlined a practical reason: “We want to make the picture more transparent and accessible. The goal is to reduce costs and simplify for new asset managers to create more crypto ETFs and mutual fund products here in Canada.”

Providers like 3iQ, Purpose Investments, and Evolve—offering Canadian crypto ETF products—stand to benefit from increased transparency and lower operational friction. By maintaining assets locally, ETF providers can achieve more efficient settlement and custody processes. This will directly impact investor experience and fund management costs.

A Bigger Vision: Building Our Own Crypto Infrastructure

Bordianu aligned the current initiative with a broader strategic imperative for Canada. As the global cryptocurrency ecosystem grows—especially with the rise of tokenized real-world assets and the proliferation of stablecoins—Canada must build a robust local infrastructure. “Our situation is like saying the Toronto Stock Exchange should rely on the U.S. Depository Trust & Clearing Corporation for all clearing and settlement operations,” he said. “If you think about it this way, it’s really amazing why we don’t do this for crypto.”

Repatriating Canadian ETF assets is just the beginning. As tokenized assets grow and blockchain technology has the potential to transform financial infrastructure, Canada should develop its own ecosystem. Balance’s qualified custodian status provides a foundation for this ambition—a step toward creating a truly Canadian cryptocurrency custody and settlement infrastructure that supports the future of digital finance in the country.

What Balance is doing is not just about a single ETF custodian appointment. It is part of Canada’s larger effort to build a competitive advantage in the digital asset economy. By bringing assets back and developing local infrastructure, the country is positioned to become a leading hub for crypto-native financial products in North America.