What is the Difference between “Off balance sheet” vs “On balance sheet”

By iTrustCapitalFebruary 06, 20232 minutes read
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Multiple events in 2022 showed the risk of the crypto industry’s common practice of including client assets on the balance sheet. There are multiple examples of companies betting or leveraging positions using client funds and then losing those assets. In many cases, it was the clients who eventually lost assets despite the clients not being the ones directly making those bets. 

At iTrustCapital, we understand that safeguarding our clients' assets is of the utmost importance. Our clients' assets are held in custodial accounts with a regulated chartered trust entity and all assets are off balance sheet. With this structure, we're able to provide compliant retirement accounts and ensure that client accounts are never commingled with our business operating funds. This innovative approach provides our clients with peace of mind and the assurance that their assets are well taken care of.

Holding client assets “Off balance sheet” means that assets are not reflected in the company's financial statements and are not used by the company to impact the company's financial ratios or leverage. In other words - client assets are client assets - and the business does not commingle client assets with business activities. This is especially important for companies like iTrustCapital, who are committed to maintaining a favorable financial profile and providing the best possible service to our clients.

On the other hand, assets held on balance sheet are recorded in a company's financial statements and can have an impact on its financial ratios and leverage. The decisions made by the business may also directly impact client assets, as seen in the crypto industry with some businesses leveraging client assets. As mentioned earlier, many large well known exchanges and platforms still hold client assets ON their balance sheet, creating the potential for additional risk. In the past, the decisions made by several of these companies resulted in their clients losing funds they had invested on these platforms.

At iTrustCapital, we believe that our clients' satisfaction is of the utmost importance. By holding client assets off balance sheet, we can provide our clients with the peace of mind that comes with knowing their assets are not commingled with our funds. One of the many reasons our clients choose iTrustCapital for a secure, worry-free investment experience.


This article is for information purposes only.  It does not constitute investment advice in any way.  It does not constitute an offer to sell or a solicitation of an offer to buy or sell any cryptocurrency or security or to participate in any investment strategy.  

iTrust Capital, Inc. is a cryptocurrency IRA software platform. It is not an exchange, funding portal, custodian, trust company, licensed broker, dealer, broker-dealer, investment advisor, investment manager, or adviser in the United States or elsewhere. iTrust Capital, Inc. is not affiliated with and does not endorse any particular cryptocurrency, precious metal, or investment strategy.

Cryptocurrencies are a speculative investment with risk of loss. Precious metals are a speculative investment with risk of loss. Cryptocurrency is not legal tender backed by the United States government, nor is it subject to Federal Deposit Insurance Corporation (“FDIC”) insurance or protections. Clients do not receive a choice of custody partner. The self-directed purchase and sale of cryptocurrency through a cryptocurrency IRA have not been endorsed by the IRS or any regulatory agency. Historical performance is no guarantee of future results.  

Some taxes and conditions may apply depending on the type of IRA account. ​​Investors assume the risk of all purchase and sale decisions. iTrust Capital, Inc. makes no guarantee or representation regarding investors’ ability to profit from any transaction or the tax implications of any transaction. iTrust Capital, Inc. does not provide legal, investment or tax advice. Consult a qualified legal, investment, or tax professional. 

iTrust Capital, Inc. makes no representation or warranty as to the accuracy or completeness of this information and shall not have any liability for any representations (expressed or implied) or omissions from the information contained herein. iTrust Capital, Inc. disclaims any and all liability to any party for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising directly or indirectly from any use of this information, which is provided as is, without warranties.

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