Asset segregation

How BCB protects clients with asset segregation 

For clients in the financial and digital asset world, one of the biggest concerns is insolvency – what happens to their funds if a provider fails? This worry has grown even more pronounced in the wake of high-profile market disruptions.

Fortunately, asset segregation provides a vital safeguard against this issue, keeping client assets separate from a firm’s own so they remain protected no matter what. 

At BCB, this is just one way we go above and beyond to safeguard our clients’ funds, giving them confidence and peace of mind in an ever-changing market.

What is asset segregation?

At BCB, we follow a principle known as client asset segregation. In practice, this means we keep clients’ assets in dedicated accounts, separate from the firm’s own funds, except when they are actively being used for trading.

Segregation isn’t just an operation process, it’s a safeguard. The idea is that if the company were to ever run into difficulties, your assets wouldn’t be caught up in its balance sheet or used to settle debts. Instead, they remain clearly ring-fenced and protected.

This separation is designed to reduce risk and give clients confidence that their money will always be treated as theirs, even in the event of market disruption or insolvency.

Why separating client assets matters

BCB is required to segregate client assets by regulation. For example, the EU’s Digital Operational Resilience Act (DORA) emphasises the importance of clear, legal ownership of client funds, including cryptocurrency, so they remain protected in the event of insolvency. 

But at BCB, segregation goes beyond compliance. We ensure client assets are always held in dedicated accounts because it’s simply the strongest way to safeguard them. From a risk management perspective, this separation enhances resilience by keeping client funds isolated from the firm’s operational risks and preventing any commingling that could create uncertainty.

By taking this approach, and by providing clients with clear evidence of segregation, we demonstrate our commitment to protecting assets under all circumstances. It’s part of our ambition to set the benchmark for safety, trust and compliance, meeting not just today’s requirements, but the highest global standards.

Protecting assets in practice

The core purpose of asset segregation is to keep client assets protected if a firm becomes insolvent. Without segregation, client funds risk being pulled into the firm’s bankruptcy estate alongside other creditors’ claims. 

Here’s what that looks like in practice:

• Step One: Identification of segregated assets

Client funds are placed in clearly designated accounts that are separate from BCB’s own (except when moving to trade). They are carefully maintained to avoid any commingling, making them easy to identify at all times.

• Step Two: Notification of insolvency

If BCB were ever to enter default or insolvency, clients and regulators would be notified immediately, triggering the protection process.

• Step Three: Verification and reconciliation

Independent custodians or administrators step in to verify the existence and condition of segregated assets. A full reconciliation is then carried out to confirm every client asset is properly accounted for.

• Step Four: Transfer or return of assets

Clients can quickly regain access to their segregated assets, with the ability to transfer them to another custodian or liquidate holdings without unnecessary delay.

Regulators oversee the enforcement of asset segregation rules. And while the aim is always for client assets to be returned in full, if that isn’t possible, compensation schemes may apply to reimburse clients in line with legal and regulatory protections.

Supporting stability in turbulent times

Segregation doesn’t just provide protection in the case of insolvency, it also plays an important role during periods of wider market stress. Because client assets are held separately, they can be transferred quickly to another custodian or clearing member if needed, helping to keep things moving even when markets are under pressure.

This clarity and security give investors greater confidence that their funds remain safe, which in turn supports market liquidity and stability. In uncertain times, that reassurance can make all the difference.

At BCB, our regulatory-first approach ensures client protection is at the heart of everything we do. By following careful principles around asset segregation, we ensure that client funds are always ring-fenced, secure, and distinct from our own. Therefore, when clients entrust us with their assets, they can have complete confidence that safety, trust, and compliance are always our top priorities.