Who owns the crypto you have through Sharesies? You doWho owns the crypto you have through Sharesies? You do

It’s called ‘custody’

Custody, or a custodial service, is how your crypto is stored for you. 

Using a custodial service means we can keep track of your money and crypto over their entire journey—from the moment you purchase crypto and money moves from your Wallet, to when (or if) you decide to sell your crypto and withdraw your money.

It’s through this custodial service that we take care of the administrative requirements that come with buying and selling crypto. It’s also what enables you to own crypto without having to manage your own crypto wallet or private keys. 

You own your crypto and have control over it

We hold your money and crypto ‘on bare trust’. Meaning, we hold them on your behalf and for your benefit. You’re in control and provide the instructions on what to do with them (such as buying or selling crypto). 

You own all of the crypto you have through Sharesies. In legal terms, you’re referred to as the ‘beneficial owner’ of your crypto—you get the benefits of owning them. In other words, you’re the owner entitled to the full value of your crypto.

You control when you want to buy or sell. We act on your instructions—we don’t make investment decisions for you.

How are my money and investments stored?

Crypto storage

Crypto you buy via Sharesies is stored on behalf of Sharesies Crypto at Kraken Financial—a Special Purpose Depository Institution (a state-chartered bank under Wyoming law). 

We use a fully segregated account at Kraken. It’s held through a proprietary solution that uses hardware security modules and multiple layers of security.

Crypto storage involves risks. Risks include advances in code cracking, attacks by hackers, scams, technical failures, or availability issues. This means there might be vulnerabilities which could lead to the loss of all your crypto. More detail is provided in the Crypto Terms and Conditions.  

Sharesies Crypto Business structure

Your money and crypto are kept separate from the money and crypto of the Sharesies Crypto business: 

• Sharesies Crypto is offered by Sharesies Crypto Limited, which does all the operational things to run the New Zealand company. 

• Investors’ money and crypto is held in the name of Sharesies Crypto Custody Limited (on behalf of investors), by our service provider Kraken. Keeping your money and crypto with Sharesies Crypto Custody Limited means that it isn’t mixed up with the operational money used to keep the Sharesies Crypto business running.

If anything were to happen to Sharesies Crypto Limited, your money and crypto are held separately to the money used in the operation of the business and cannot legally be used to pay Sharesies Crypto Limited’s debts.

Our custodial service will be regularly audited. 

An audit is a thorough process where the auditor looks in detail at all of the systems and controls we’ve put in place to hold your money and investments. 

Wrapping up

You own the crypto you have through Sharesies and have control over it.

We provide a custodial service to hold your crypto on your behalf. You don’t have to manage your own wallet or keys. The crypto is stored with Kraken. We can’t use your money or do anything with your investments unless you tell us to.

If you have any other questions, get in touch at help@sharesies.co.nz.