Software company Onramp has launched a global bitcoin asset management platform built on multi-institution custody.
The initiative has been developed to provide institutional allocators, financial intermediaries and high-net worth individuals with a custodial solution that leverages bitcoin’s native properties to eliminate single points of failure and minimise counterparty risk.
Built in partnership with BitGo, Coincover, and Kingdom Trust, Onramp’s custody solution utilises bitcoin capabilities to create institutional-grade vaults controlled by three institutional key holders.
Each key is held by a different institution with knowledge of bitcoin custody and its own independent know-your-customer/anti-money laundering onboarding and client authentication. Two of the three keys are necessary to move the funds in the vault at the direction of the end client.
Operating the solution in this way means that Onramp can remove the single point-of-failure concerns associated with trusting a single custodian.
Institutions and individuals face a dilemma when deciding how to gain access to and safely store bitcoin, says Onramp.
Self-custody remains an excellent option for some, but inherent technical challenges and security considerations may not satisfy the preferences and requirements of all investors, it adds. Additionally, existing, centralised custodial options can introduce other risks.
Early clients of the Onramp custody solution include independent custodian Kingdom Trust/Choice IRA, bitcoin company BitStop, crypto asset service provider CoinMENA and crypto firm Mash.
Onramp is also conducting the first-ever implementation of a multisig quorum which leverages BitGo’s cold storage signing and authentication processes.
Alexander Saleh, head of partnerships at Coincover, says: “With access to products like the Bitcoin Investment Fund, Onramp’s multi-institution custody is a brilliant option for businesses and individual investors looking to interact with Bitcoin without worrying about the complexities of private key management, and what can happen if that goes wrong.”
“Onramp’s multi-institution approach to bitcoin custody is all about maximising security while minimising counterparty risk.”
Mitch Kochman, director of platform sales at BitGo, comments: "BitGo believes that multi-institution custody can reduce counterparty risk and onboard capital on the sidelines of bitcoin. We applaud innovation in the custody space, new products and services using multi-sig technology, and we’re proud to do our part in enabling them.”
