Voyager Digital (TSX: VOYG) is looking to distance itself from Celsius following the ongoing implosion of that service. The firm this morning issued what it refers to as an update on its asset and risk management, in light of the events.
Voyager referred to itself as having a “consistently high level of transparency,” a statement which it evidently bases on the fact that it is required to file quarterly financial statements due to being a publicly traded firm, along with the risk disclosures that are required by regulators.
Outside of this stretch of a comment, the company highlighted that it does not conduct DeFi lending activities, algorithmic stablecoin staking or lending, and doesn’t deal in derivative assets. As for its lending and asset management services, the company works with “a select group of reputable counterparties,” whom are vetted via the risk committee.
Notably, the company specifically names Celsius in relation to its risk disclosure, stating that despite a partnership announced in 2019, due to “ongoing due diligence” and their “risk management process,” the firm has zero assets currently placed with Celsius. No details were provided in terms of when assets were last placed with the company.
At the time of the 2019 partnership announcement, CEO Stephen Ehrlich had commented that “Bringing Voyager customers more products to enable them to be successful in the ever-growing digital financial service market is core to the Voyager value proposition.” At the time the partnership was to manage “certain assets,” also specifics were not provided.
The duo, along with Gemini Trust Co, were reportedly under the microscope by the US Securities and Exchange Commission earlier this year in connection with an inquiry into firms that pay interest on virtual token deposits.
Voyager Digital last traded at $2.00 on the TSX.
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As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.