DMG Blockchain Solutions Inc. (TSX-V: DMGI), a prominent provider of digital asset and blockchain solutions, has announced that its fully owned affiliate, Systemic Trust Company (STC), has successfully achieved System and Organization Controls (SOC) compliance. This compliance was conducted according to the standards set by the American Institute of Certified Public Accountants (AICPA) for SOC for Service Organizations. The achievement signals a significant milestone for the company, underscoring its commitment to providing enterprise-grade security for customer data stored within its systems.
The announcement of SOC 2 Type 1 compliance was made public following the release of Systemic Trust’s SOC 2 Type 1 report on August 29, 2024. The report highlights the company’s compliance with industry-recognized trust principles and serves as third-party validation of its robust security systems. SOC 2 Type 1 certification is a key step for companies seeking to reassure clients and partners about their security protocols, especially in sectors that rely heavily on the secure management of sensitive data.
Systemic Trust’s SOC 2 Type 1 report outlines the design and structure of the company’s systems and whether they adhere to the necessary trust principles outlined by AICPA standards. These principles include security, availability, processing integrity, confidentiality, and privacy. The examination was conducted by an independent, licensed CPA firm based in New York City, which specializes in providing audit and attestation services. The successful completion of the audit demonstrates Systemic Trust’s commitment to achieving high compliance standards across its operations.
Looking ahead, DMG Blockchain Solutions and Systemic Trust have planned to conduct a follow-up SOC 2 Type 2 attestation in 2025. This forthcoming assessment will further enhance the company’s credibility in terms of compliance, as the SOC 2 Type 2 report examines how effective the organization’s systems are in operating according to the previously evaluated trust principles over time. Achieving SOC 2 Type 2 compliance will serve as another layer of assurance for customers, partners, and regulators, solidifying the company’s dedication to maintaining the highest levels of security and data protection.
The SOC 2 standard, developed by the AICPA, is a voluntary compliance framework specifically designed for service organizations that manage sensitive customer data. It serves as a guideline for how organizations should implement controls to ensure security, availability, confidentiality, and privacy. A key advantage of SOC 2 compliance is its flexibility, allowing organizations to tailor their controls to meet their unique business needs. This flexibility ensures that companies like Systemic Trust can design and implement security measures that align with their operational goals while still adhering to stringent industry standards.
The SOC 2 report not only benefits the organization internally but also provides valuable insights to regulators, business partners, and suppliers. By demonstrating compliance, Systemic Trust enhances transparency around how it manages customer data and provides confidence to those relying on its services. Given the rising concerns around data breaches and cybersecurity threats, SOC 2 compliance offers a crucial competitive advantage, ensuring clients that their data is handled with the highest level of security.
As part of DMG Blockchain Solutions’ broader strategy, the achievement of SOC 2 compliance by its affiliate, Systemic Trust, further supports the company’s overall mission to deliver secure and scalable blockchain and digital asset solutions. DMG operates across two main business lines, referred to as the Core and Core+ strategies, which are integrated through the company’s vertically integrated business model. This structure allows DMG to manage, operate, and develop end-to-end digital solutions designed to support the blockchain ecosystem. By incorporating sustainable practices and adhering to strict security standards, DMG is well-positioned to maintain its leadership in the digital asset space.
In conclusion, Systemic Trust’s attainment of SOC 2 Type 1 compliance represents a critical achievement for DMG Blockchain Solutions and reinforces the company’s commitment to high compliance standards. As the digital landscape continues to evolve, ensuring the security and integrity of customer data remains paramount, and Systemic Trust’s efforts to meet these standards reflect positively on both the organization and its parent company. With SOC 2 Type 2 compliance on the horizon, DMG is poised to further enhance its position as a secure and reliable player in the blockchain and digital asset industry.