Alberta Witnesses Pioneering Cryptocurrency Custody Operation by Canadian Firm

In a groundbreaking move, Canadian fintech company Balance has enabled a unique Bitcoin transaction for the purchase of a vehicle from Shift Happens Auto Sales, a tech-forward used vehicle dealership based in Airdrie.

The innovative deal marked the first time Shift Happens used Bitcoin as collateral for an auto loan. Balance, as a neutral third party, provided custodial and escrow services through its institutional-grade infrastructure, making the idea possible and easy to execute.

The transaction involved the buyer holding Bitcoin in Balance's offline storage until conditions set forth in the Escrow Agreement were satisfied. Upon fulfillment, Balance will release the Bitcoin in 12 monthly fiat tranches as instructed by the buyer.

This pioneering transaction demonstrates the practical use of digital assets in everyday commerce with the right safeguards, according to George Bordianu, a cofounder of Balance. He believes that as more assets become tokenized, Balance's custody-first, escrow-backed framework can enable safe and compliant adoption of novel use cases.

The success of the transaction sets a precedent for expanding digital asset-backed transactions across industries. Wesley Craik, Director of Shift Happens, is committed to finding creative, customer-friendly ways to make vehicle ownership possible. He expressed his satisfaction with the collaboration, stating that it was a significant step towards making Bitcoin a viable option for auto loans.

Balance worked with Bow Valley Credit Union and Calgary-based Bull Bitcoin on the Bitcoin Gateway in July. This platform enables members to buy Bitcoin directly from their existing credit union accounts. The process complied with Canadian regulatory frameworks governing digital assets, including CSA and FINTRAC mandates.

This transaction was a first within Alberta and marks a significant milestone in the adoption of digital assets in the automotive industry. As more businesses explore the potential of blockchain technology, we can expect to see more innovative uses of Bitcoin and other digital assets in everyday transactions.