Store Assets In A Crypto Trust
You Should Have Full Control Of Your Crypto Assets
My Digital Money holds all crypto assets in trust with our partner, Equity Trust, a U.S. state-chartered trust since 1974 with more than $35 billion in assets under custody. Storing your crypto in trust gives you full ownership of your assets and safeguards them against creditors, liability, and other unexpected risks*.
Why Store Crypto In A Trust?
The Benefits Of Storing Your Crypto In A Trust
Storing crypto on an exchange like Coinbase may be easy, but is it safe? Many investors don’t realize that in the event of bankruptcy, they could lose all of their assets. When you hold your crypto assets in a trust, you safeguard them against various custodial risks like bankruptcy, insolvency, and leveraging.
No Platform Liquidity or Custody Concerns
Gerald Cotton, the co-founder of Canada’s largest crypto exchanges, passed away unexpectedly in 2018. Unfortunately, Cotton was the only person at Quadriga CX with access to the wallet and related keys, resulting in investors losing access to their assets. To this day, those assets remain unavailable. Storing your assets in a trust means only you own them, safeguarding them against this and any other liquidity and custody concerns.
We Can’t Lend Or Leverage Your Assets
Crypto exchanges don’t offer their customers free trades and low commissions out of the goodness of their hearts. They take a loss on fees and commissions to attract more assets they leverage in their own investments and lending. If one of those loans or investments were to be a bad bet and the exchange went under, any funds remaining on the platform would be distributed to institutional creditors before retail investors, likely resulting in a loss of your retirement savings.
Who Is Equity Trust?
Equity Trust has been a state-chartered trust company since 1974, operating in compliance with all statutes and regulations mandated by the South Dakota Division of Banking. Their financial statements are audited annually by an independent certified public accountant, in accordance with AICPA professional standards.
Frequently Asked Questions
Still have questions about the benefits of storing your crypto in trust? Here are some of the most common questions we receive from our customers.
What Is An IRA Custodian?
An IRA custodian is a licensed and regulated institution like a bank, credit union, or non-depository bank that holds IRA assets. There are various types of custodians such as third-party custodians and self-directed custodians. When you invest in a crypto IRA on My Digital Money, your assets are held in trust by our custodian, Equity Trust. Learn more about how custody works here
What Would Happen To My IRA If My Digital Money Goes Out Of Business?
Because your assets are stored in a trust, even if My Digital Money were to go out of business, you would still retain full ownership of your account and assets. In this scenario, you would just have to transfer your IRA to a new custodian to avoid any taxable events or penalties. This is one of the biggest benefits of trading crypto on My Digital Money.
Can My Digital Money Lend Or Leverage Against My Assets?
My Digital Money does not ever lend, leverage, borrow, or otherwise use your assets in any way. All assets on My Digital Money are held in trust with our custodial partner, Equity Trust. Your assets are never comingled with our operating funds and are stored in an institutional wallet by the custodian.
*Storing crypto in a trust does not protect your assets from losses related to your investment decisions or market volatility.