Onramp, BitGo Unveil Bitcoin Custody Solution to Tap Trillions in Institutional Capital
Onramp, a bitcoin asset management firm, has officially announced the launch of their new multisig custody platform. In an era where the way bitcoins are stored and managed becomes crucial, Onramp brings an innovative so...
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Onramp, a bitcoin asset management firm, has officially announced the launch of their new multisig custody platform. In an era where the way bitcoins are stored and managed becomes crucial, Onramp brings an innovative solution that promises to set a new standard in the industry.
Traditional bitcoin storage methods have posed a significant dilemma for both institutions and individual investors. While some prefer the self-custody approach due to its direct control, many are wary of its technical complexities and potential security issues. On the other hand, centralized custodial options come with their own set of risks.
To bridge this gap, Onramp has partnered with BitGo, Coincover and Kingdom Trust to offer a solution that aims to combine the best of both worlds. Their approach aims to cater to institutional allocators, financial intermediaries, and high net worth individuals by offering a trust-minimized custodial solution. By doing so, they aim to remove the traditional single points of failure that often come with trusting one entity with custody.
Central to Onramp's strategy is their Multi-Institution Custody solution. By leveraging the tried-and-tested multisig capabilities of bitcoin, they've established institutional-grade vaults that are controlled by three distinct institutional key holders: BitGo Trust, Kingdom Trust, and Coincover. In order to access the funds in these vaults, authorization from at least two of the three keys is required, ensuring that no single entity has unilateral control over the assets.
BitGo, Inc., is a leader in digital asset infrastructure, and the company brings a wealth of expertise to the table. Kingdom Trust holds the distinction of being the first Qualified Custodian to handle bitcoin, and Coincover is recognized as a blockchain protection company. Onramp's Multi-Institution Custody solution leveraging multisig ensures that while the company is working with top-tier entities in bitcoin custody, the necessary trust for each institutional key-holder is minimized.
This solution comes at a time when many institutions have been hesitant about entrusting their bitcoins to a single custodian. With Onramp’s offering, the challenges that come with traditional bitcoin custody methods are eliminated, making it easier for institutional capital allocators to access the cryptocurrency.
In addition to their flagship custody offering, Onramp also boasts a suite of products and services tailor-made for various investors. From their Bitcoin Custody service, which aids both new and existing bitcoin holders, to their Bitcoin Fund that allows traditional investment access to bitcoin, Onramp’s focus is to provide solutions that combine bitcoin’s inherent properties with the benefits of institutional-grade custody.
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