The trust will use three separate key holders to offer the benefits of a multi-signature custody to institutional investors.
Unramp bitcoin Launched the first trusted bitcoin product that uses multi-party custody. This product is designed specifically for high net worth individuals, companies and institutions seeking exposure to bitcoin, according to press release.
The trust product will use three institutional-grade keyholders, a qualified custodian named Kingdom Trust, and a Bitcoin custodial service company Unrestricted capitalto ensure that custody of the client’s bitcoin does not have a single point of failure.
Onramp is the first trust to take advantage of a multi-signature setup, which requires a quorum to transfer funds. The product is designed for those who want exposure to bitcoin without complete third-party swaps, but are not yet ready for the responsibility of full self-custodianship.
According to the press release, Onramp’s solution also aims to address the limitations of existing Bitcoin fund tools, including point-of-failure custody, taxable events upon withdrawal, lack of focus on Bitcoin, and education.
The press release explains that the trust will focus on “bitcoin only with a commitment to education and advisory services to help clients excel during periods of volatility.”
The product will also offer segregated accounts with the ability to hold the base bitcoin without incurring any taxable event.