Delchain and Deltec: Crypto Custody from Lyford Cay

Deltec House in Lyford Cay is home to Delchain, a digital asset firm that does what Deltec Bank says it doesn’t: hold and trade crypto for clients. Here is what Delchain is registered to do, what its site promises, and why most retail buyers will find it the wrong tool.

Delchain vs Deltec Bank: who does what

The names cause confusion, so start here. Deltec Bank & Trust is the private bank. After the FTX collapse in late 2022 it told the Nassau Guardian it “does not hold or trade digital assets for its own account or on behalf of its clients”. Deltec Bank is not on the SCB’s digital asset register.

Delchain Ltd is the crypto business. It is on the register, lists Deltec House as its address, and describes itself as “part of the largest private banking group in the Caribbean”. The formal corporate link isn’t otherwise spelled out. What matters for you: your crypto contract is with Delchain, a Securities CommissionSCB The Securities Commission of The Bahamas, the regulator that registers and supervises crypto businesses under the DARE Act. Glossary registrant, not with the bank.

What Delchain offers

Delchain’s site groups its services into four areas. Crypto-to-fiat settlement turns digital assets into US dollars or other currencies. Digital asset custody means Delchain holds the keys for you, a custodialCustodial Someone else, usually an exchange, holds the keys for you. Easy, but you rely on that company staying solvent and honest. Glossary arrangement backed by hardware and software security. Crypto trading promises “live prices and cost effective, algorithmic executions”, which in practice means an OTCOTC (over the counter) A private deal for large amounts, usually $50,000 or more, priced by a desk rather than on the public order book so the trade does not move the market. Glossary desk rather than a public order book. Fiat banking provides a multi-currency account, treasury support and structured products “via our banking partners”.

Its intake forms also list stakingStaking Locking up certain coins to help secure a blockchain in exchange for a yield. DARE-registered staking providers must warn clients about the risks in writing. Glossary and DeFi as services of interest. The custody list names BTC, ETH, USDT, BCH, BSV, LTC, EOS, XTZ, XLM, VET, ALGO and ERC-20 tokens, “not limited to what is displayed”. Under the DARE Act, staking providers must warn you that rewards may create tax liabilities abroad.

Who qualifies, and who doesn’t

Delchain takes both individual and corporate clients, but three filters narrow the field. First, no US persons: the site says it cannot serve people in the U.S. “for legal reasons”. Second, the corporate form singles out unregulated or unregistered exchanges, market makers and OTC desks, plus gambling and adult entertainment businesses, which signals extra scrutiny or refusal for those profiles. Third, the form asks for your anticipated monthly volume, a sign that pricing and acceptance depend on size.

Delchain doesn’t require you to be an accredited investorAccredited investor Under DARE 2024, an individual with net worth over $1 million or income over $200,000 in each of the last two years. Glossary on its public pages, but its positioning is private-bank style. Bahamian residents also face exchange controlExchange control Central Bank rules on residents moving Bahamian dollars into foreign currency or foreign assets. Crypto is treated as a foreign asset. Glossary: the Central Bank treats crypto as foreign property, and resident investment normally runs through the ICMInvestment Currency Market The Central Bank’s channel for residents buying foreign currency for overseas investment, with a 5% premium on purchases and 2.5% on sales. Glossary at a 5% premium, with prior approval. Ask Delchain how it handles that before you send Bahamian dollars.

Delchain vs Galaxy and Capital Union

Three Nassau firms come up for large trades, and their SCB registrations differ.

Galaxy describes its markets business as institutional access. Capital Union Bank is a licensed bank with a broader banking relationship around its crypto service. Delchain sits between the two: crypto-native, with fiat accounts through partners. Our OTC guide compares the wider market, including desk minimums.

Verdict

Delchain is a credible, locally registered option for companies and wealthy individuals who want custody, block trades and fiat settlement under one Bahamian relationship. It is not built for a first B$200 purchase. For that, a debit-card buy on an exchange that accepts Bahamas residents is simpler; see our CEX.IO review or the exchange comparison, and check any firm on the SCB register first.

Where to go next

OTC desks Block trades, private banks and SCB-registered custodians in Nassau. Read guide Capital Union Bank A Bahamian private bank registered under the DARE Act for custody, exchange and staking. Service… Read guide Registered companies The official DARE register, decoded firm by firm. Read guide Crypto regulation DARE Act 2024, SCB powers, the Travel Rule and new 2027 fees in plain English. Read guide