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*.
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.
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.
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.
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.
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.
*Storing crypto in a trust does not protect your assets from losses related to your investment decisions or market volatility.
Determine what’s the best crypto investment strategy for you through Our Crypto Investment Guide.
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