Voyager Digital seeks to distance itself from Celsius amid crypto-banking race

Voyager Digital (TSX: VOYG) seeks to distance itself from Celsius following the service’s continued implosion. The company released what it calls an update on its asset and risk management this morning in light of events.

Voyager has called itself a “consistently high level of transparency”, a statement it obviously bases on the fact that it is required to file quarterly financial statements due to its status as a publicly traded company, as well as well as the risk disclosures required by regulators.

Apart from this part of a comment, the company pointed out that it does not conduct DeFi lending, staking, or algorithmic stablecoin lending, nor does it deal in derivative assets. When it comes to its lending and asset management services, the firm works with “a select group of reputable counterparties”, which are vetted by the risk committee.

Notably, the company specifically names Celsius in relation to its risk disclosure, stating that despite an announced partnership in 2019, due to “ongoing due diligence” and their “risk management process”, the company has not currently no assets placed with Celsius. No details were provided as to when the assets were last placed with the company.

At the time of the partnership’s announcement in 2019, CEO Stephen Ehrlich said that “Bringing more products to Voyager customers to enable them to succeed in the ever-growing digital financial services market is central to the value proposition. travel”. At the time, the partnership was to manage “certain assets”, and no details were provided.

The duo, along with Gemini Trust Co, reportedly came under the microscope of the U.S. Securities and Exchange Commission earlier this year as part of an investigation into companies that pay interest on virtual token deposits.

Voyager Digital last traded at $2.00 on the TSX.

Information for this briefing was found via Sedar and the companies mentioned. The author has no security or affiliation related to this organization. Not a buy or sell recommendation. Always do additional research and consult a professional before purchasing a title. The author holds no license.