Olympia Trust Company, a Canada-based, non-deposit-taking trust company, will soon receive an exclusive Canadian license to use a proprietary bitcoin custody system developed by Knox, according to a press release.
Both companies will determine the final shape of the agreement following the completion of due diligence.
“Upon completion of the transaction, it is anticipated that Olympia Trust will be one of the few Canadian financial institutions able to hold bitcoin as a ‘qualified custodian,’” per the release.
It is also anticipated that Olympia Trust will be able to provide custodial services to Investment Industry Regulatory Organization of Canada (IIROC) regulated investment dealers who offer bitcoin to their clients.”
The deal will see Knox, a Canada-based insured Bitcoin custody provider that focuses on cryptocurrency key management, receive a one-time fee of $500,000 and a share of future profits generated by the license and assets acquired by Olympia from Knox, per the release.
In addition to using the proprietary Bitcoin custody system, Olympia Trust will also acquire certain facilities and insurance policies used by Knox.
“Being able to offer Bitcoin custody is a natural evolution of our traditional corporate trust services,” said Craig Skauge, president and CEO of Olympia Trust, in the release. “The appetite for institutional investors to hold bitcoin continues to grow.’’
Alex Daskalov, CEO of Knox, said that the struggles of the Canadian market to find quality institutional bitcoin custody options would be coming to an end with this entry of Olympia Trust.
Both parties are expected to sign the definitive agreements of the deal in the third quarter of 2021, per the release.