Brane Capital offers an independent solution for securing crypto assets
Gone are the days when cryptocurrency was mysterious and niche, traded by only tech-savvy investors.
With a market value that has exceeded all U.S. currency in circulation, crypto has graduated to one of the world's largest asset classes. In the years ahead, it's highly likely that anyone handling money, from big banks to young investors, will have a direct interest in the proper management and regulation of crypto and the underlying blockchain technology.
That's the mission adopted by Brane Capital, a Canadian fintech company that offers secure custody solutions for institutions looking to manage cryptocurrencies.
Brane believes independent custodians of cryptocurrency can play a vital role in stabilizing the market and protecting investors. Like a digital evolution of traditional asset custodians, crypto custodians oversee the private keys that allow people to access their crypto investments, and build the framework needed for institutions to securely manage digital assets.
“Brane started in 2017 as a company that was building tech to solve one core problem: how do you keep digital assets safe? They recognized that to help foster the industry and empower investors to participate, there was a need to ensure it was possible to securely access and invest in this innovative asset class,” says Jerome Dwight, a seasoned banking and fintech executive who stepped into the role of president at Brane earlier this year. “We believe we have the right technology and the right team at this critical time, when we have an opportunity to reinvent the traditional
ecosystem for a new asset class.”
Brane offers institutions a platform to manage their digital assets that's user-centred in its security, scalability and ease of use. But the true benefit Brane brings to the market is the company's independence. Brane is owned and operated separate from the exchanges where crypto is bought and sold, so digital asset safekeeping is their sole focus.
“Crypto has started to come into its own as an asset class. There's no denying the growth. As it expands, traditional banks need to be putting in place the same kind of mechanisms as we do with
other traditional asset classes,” says Dave Revell, a board member and former global
chief information officer for CIBC. “Independent custodians are really important. An entity like Brane that's
independent, but also has the highest quality in terms of underlying tech safety and security, is exactly the type of partner banks are looking for.”
Lessons learned from the 2008 market crash bolster Dwight's perspective on independent custody. At the time, he was CEO of Bank of New York Mellon's Canadian operations, as the custodial bank played a key role in stabilizing the market and administering government relief programs.
“Exchanges offering custody have an inherent conflict of interest because of
their divided focus,” Dwight explains. “Exchanges are there to create a market for investors to buy and sell assets. It's our view that crypto custodians should really only focus on having the right technology and risk management in place, and the best people to keep digital assets safe.”
Combining expertise from the worlds of blockchain, traditional banking and government, Brane's leadership
team is uniquely equipped to bring confidence and credibility to the developing crypto ecosystem. It's the key to navigating the evolving relationship between those worlds, towards a future where crypto assets have earned broad mainstream adoption.
“Brane is a company that was born on the blockchain,
so they're not dealing with the challenge of repurposing old infrastructure. They've always been using cutting-edge tech,” says Revell, who sees this as part of the company's unique offering.
“Coming from the background of being a Chief Information Officer, people often ask me why a bank would want to go and buy a service like Brane's instead of building their own. I know from experience that most
CIOs choose the strategy of buy over build. Their role is
delivering value and functionality. Both are available
with a team like Brane. Their platform is easily integrated and safe, so going with a pre-existing industry solution like theirs beats building something from scratch.”
As the demand for crypto in Canada rises and banks prepare to scale their digital asset management, a critical moment in market regulation lies ahead. Without concerted action, the Canadian market could see regulation
lag behind investor participation.
“Investment dealers have IIROC, banks have OSFI, and there are well-defined procedures and policies on who can do what activity. In Canada, one of the mandatory
requirements as we build this new ecosystem should be to have an independent custodian. Right now, the dominant custodian in Canada is a U.S. company, which is affiliated with exchange. In the event of a liquidity crisis, that could have a devastating effect on the market,” Dwight explains. “But because the operating framework is really still being designed in Canada, we have a chance to do it right.”
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We believe we have the right technology and the right team at this critical time, when we have an opportunity to reinvent the traditional ecosystem for a new asset class.