Diversifying Crypto Custody
Purpose Investments Becomes Canada's First with Three-Sub-Custodian Model, Adding Anchorage Digital Bank
Anonymous
Purpose Investments has become the first digital asset ETF manager in Canada to spread its holdings across three independent sub-custodians, according to Financial Post. The firm added Anchorage Digital Bank — the first federally chartered crypto bank in the United States — as its newest custody partner.
The move sets a new industry benchmark in Canada for how crypto ETF assets are stored and protected, Digital Journal reported. It builds on Purpose's long-standing "segregation-first" philosophy, which aims to reduce the risk of losing assets by never keeping them all in one place.
Why Three Custodians Is a Big Deal for Crypto ETFs
Most digital asset ETF managers rely on one or two custodians to hold their crypto. Using three independent sub-custodians means that if one fails or is compromised, the other two still protect the bulk of investor assets. Purpose is now the first manager in Canada to reach this threshold, according to Ottawa Sun.
Custody risk is one of the biggest concerns in crypto investing. Spreading assets across multiple custodians lowers the chance that a single point of failure — like a hack or a collapse — wipes out fund holdings. Purpose's three-custodian setup is designed to give investors a stronger safety net, Montreal Gazette reported.
Anchorage Digital Bank Brings Federal-Level Oversight
Anchorage Digital Bank is not an ordinary crypto firm. It holds a national bank charter from the Office of the Comptroller of the Currency (OCC), making it the only federally regulated crypto bank in the US. That federal oversight is a key reason Purpose chose it as a sub-custodian, according to Leader Post.
Operating under OCC supervision means Anchorage must meet strict banking standards for security, capital, and compliance. For Purpose's ETF investors, that adds an extra layer of institutional credibility to how their digital assets are stored and safeguarded.
Purpose Also Runs Its Own Crypto Validators In-House
Beyond custody, Purpose continues to run its own validators for Ether and Solana. These validators help process and confirm transactions on those blockchain networks. The firm operates them through Purpose Unlimited Inc., its parent company, Northern News reported.
Running in-house validators gives Purpose more direct control over its staking operations. It also means the firm does not have to rely entirely on third parties to earn staking rewards for its ETF investors — a competitive advantage in the growing digital asset ETF space.
Carbon Offset Program Gets a New Data Foundation
In a separate move, Purpose acquired a carbon footprint measurement system originally built by Patch Technologies Inc. The software will support the carbon-offset program tied to the Purpose Bitcoin ETF, according to Financial Post. This lets Purpose measure and offset the carbon emissions linked to its Bitcoin holdings.
The acquisition gives Purpose full ownership of the methodology and tools it uses to calculate Bitcoin's environmental impact. Rather than licensing the technology from a third party, Purpose now controls that data pipeline directly — keeping its carbon-offset program independent and auditable.
Sentiment
NeutralNEGATIVENEUTRALPOSITIVE
Publishers
21
Articles
20
Reach
21
Topics
A
AnonymousAuthor