This document provides an overview of the custody and administration services offered by Blockrise Capital B.V. (Blockrise) to its Investors, in accordance with Article 75(3) of MiCAR.
Blockrise Capital B.V., located at Blaak 555, 3011 GB, Rotterdam, The Netherlands, is supervised by the Authority Financial Markets (AFM). This regulatory oversight ensures that the company adheres to strict standards of operational integrity and investor protection.
Blockrise Capital B.V. provides several types of wallets to support its custody services. Custody wallets are designed to allow investors to manage their assets independently, unless they explicitly authorise Stichting Blockrise to participate in the wallet’s management. For Asset Management services, Investors utilise portfolio wallets where authorisation is shared between the investor and Stichting Blockrise. Additionally, trade wallets are used for facilitating transactions and are managed exclusively by Blockrise. All wallets employ advanced security mechanisms, including the use of Hardware Security Modules (HSMs), to securely manage and store cryptographic keys. This ensures the highest level of security for Investor assets. The principle of segregation is strictly maintained, meaning investor wallets remain under their exclusive control unless explicit permissions are granted to Stichting Blockrise for specific purposes. Blockrise may arrange (temporary) sub-custody for crypto assets with MiCAR-licensed exchanges to execute orders on behalf of the Investor.
The custody services rely on cryptographic authorisation keys, such as seed phrases and cryptographic keys held on mobile devices, to provide secure access to wallets. These measures ensure that only authorised individuals can access the assets. To further protect Investor (fiduciary) funds and crypto assets, Blockrise has established Stichting Blockrise, an independent foundation that guarantees the segregation of investor assets from Blockrise’s operational funds. Regular (daily) statements are provided to Investors through the Blockrise Dashboard, detailing their asset positions, balances, and transaction history, ensuring transparency and accountability.
Investors retain full control over their assets and may access services such as asset management only after providing explicit authorisation to Stichting Blockrise. They also have the right to terminate the service agreement under the terms outlined in their contract. Fee structures are clearly disclosed to ensure transparency, and any changes to the terms of service are communicated to investors at least 30 days in advance, allowing them ample time to review and respond.
Blockrise employs a proactive risk management strategy to safeguard investor assets. Multi-factor authentication, cryptographic verification, and regular audits form the foundation of its security measures. In the unlikely event of insolvency, legal segregation ensures uninterrupted access to investor assets. Contingency measures are in place to facilitate asset recovery and transfer independently of Blockrise’s operational status.
Blockrise assumes liability for any loss of crypto assets or access means resulting from incidents attributable to its services. The liability is capped at the market value of the affected assets at the time of the incident. However, incidents caused by factors beyond Blockrise’s control, such as distributed ledger issues, are not covered.
Investors interact with their wallets through the secure Blockrise Dashboard, which requires cryptographic confirmations for all transactions, ensuring security and accuracy. In cases of suspected fraud or security breaches, Blockrise promptly notifies investors, enabling them to take immediate action to protect their assets.
This document outlines the key aspects of Blockrise’s custody services, providing investors with a clear understanding of the measures in place to safeguard their assets. For additional details or clarifications, investors are encouraged to contact Blockrise Capital B.V. through the communication channels specified in the Service Agreement.