Protecting risk through segregation

In today’s evolving financial landscape, client trust is built on the assurance that their assets are safe, protected and managed with integrity. One of the most effective ways to achieve this is through segregation of client assets, a regulatory and operational safeguard that ensures client funds and securities remain separate from those of the financial institution. For institutions operating in the digital asset space, compliance with Safeguarding and Client Assets regulation is essential to building resilience, ensuring transparency and insulating clients from risk. At BCB Group we build to endure and are committed to exceeding these standards by leveraging segregation as a powerful tool for risk mitigation. 

What safeguarding means

In digital payments, safeguarding refers to the protection of client funds. It ensures that money held on behalf of clients is ringfenced and kept separate from the company’s own accounts. If a payment provider becomes insolvent, safeguarded funds are able to go back to clients. For treasury managers, corporates, and institutions engaged in digital asset activity, this protection is vital.

Why safeguarding matters more in digital assets

Traditional payments already require strict safeguarding, but digital assets introduce new layers of complexity. Market volatility, the reliance on multiple counterparties, and the speed of settlement all increase exposure to risk. Treasury managers and corporates need confidence that their funds remain protected, even when trading across different asset classes or jurisdictions. Safeguarding provides assurance and allows businesses to plan with confidence.

Segregation of client funds

The principle of segregation underpins safeguarding. Regulation requires payment providers to separate client money from the firm’s operational funds. In the UK, authorised payment institutions must maintain safeguarding accounts for client funds. In Europe, MiCA regulation sets equivalent standards. Segregation provides reassurance that funds remain safe and accessible, regardless of the financial position of the service provider.

At BCB Group, segregation is not just a regulatory requirement; it is a core part of how we build trust with our clients. We always return funds to safeguarded accounts before and after every transaction.

Temporary transfers during trading

Trading requires speed and precision. To execute client trades efficiently, we sometimes transfer funds into non-safeguarded omnibus accounts. This step is operationally expedient, and always temporary. Funds may sit in omnibus accounts for several hours, depending on settlement timelines with liquidity providers. Once trades are complete, we move the funds straight back into safeguarded accounts. 

Diligence and risk controls

Our commitment and approach to safeguarding goes beyond compliance. We embed rigorous checks and balances to minimise exposure during every stage of a trade. These include:

1. Pre-trade and post-trade reconciliation to confirm balances and ensure accuracy.
2. Real-time monitoring of all fund flows for transparency and speed of action.
3. Counterparty risk assessments and due diligence to evaluate the financial stability and resilience of those we transact with on behalf of our customers.
4. Settlement timeline tracking to shorten exposure periods wherever possible.

Together, these measures ensure that client funds remain protected, even while trades are in progress.

Added value for clients

For corporate treasuries, effective safeguarding reduces operational risk and protects liquidity. It ensures that funds required for payroll, suppliers, or hedging strategies are always available when needed. For FinTechs scaling at speed, safeguarding creates the stability needed to manage rapid inflows and outflows. In both cases, safeguarding underpins business continuity and supports growth.

Regulatory oversight

BCB Group operates under robust regulatory frameworks in both the UK and EU, ensuring client asset protection through segregation and safeguarding requirements. In the UK, BCB Payments Limited is authorised and regulated by the Financial Conduct Authority as an Authorised Payment Institution (API) under the Payment Services Regulations 2017. This entails strict obligations to safeguard customer funds by holding them separately from the firm’s own assets and ensuring they remain protected at all times. In the EU, BCB Payments (Europe) SASU is authorised by the ACPR as an Electronic Money Institution (EMI), providing equivalent protections under European e-money and payments law. Alongside this, BCB Markets (Europe) SASU is registered with the AMF as a Digital Asset Service Provider (DASP) (No. E2024-112), enabling it to provide crypto-asset services. 

In addition, BCB is preparing to obtain authorisation under the EU’s Markets in Crypto-Assets (MiCA) regime including as a Crypto-Asset Service Provider (CASP). Together, these licences and preparations ensure that client assets, whether fiat or digital are safeguarded, segregated, and ring-fenced under applicable UK and EU regulations, reinforcing BCB Group’s commitment to protecting clients through operational and regulatory segregation of funds.

Transparency and trust

Transparency builds confidence. That is why we are open about how we handle client funds and the safeguards we apply. By explaining our processes clearly, we aim to remove uncertainty and give our clients the assurance they need to operate at scale in fast-moving markets.

We also encourage dialogue. Clients can speak directly with our team to understand how safeguarding works in practice, review reporting, and discuss our reconciliation and monitoring processes. This openness helps businesses operate with complete visibility and trust.

Built to endure

Safeguarding is more than a compliance obligation, it is a pillar of client protection and risk management. We treat it as a responsibility that underpins every trade we execute. For corporates and institutions navigating digital assets, it means having the confidence that their money is protected by systems designed to withstand complexity and change.

As digital asset markets mature, safeguarding will remain essential. New instruments, trading venues, and payment solutions will continue to emerge, but the need to protect client money will not change. By investing in strong controls and transparent processes today, BCB Group positions clients to embrace these opportunities securely tomorrow.

At BCB Group, we take that responsibility seriously. We are built to endure, so our clients can focus on growth, innovation, and opportunity.

Speak to our team to learn more about how BCB Group safeguards client funds and supports secure trading across digital and fiat markets.