The trust will use three separate key holders to offer the benefits of multi-signature custody to institutional investors.
on-ramp bitcoin has launched the first spot bitcoin trust product that employs multi-party custody. This product is designed for high net worth individuals, corporations and institutions looking to gain exposure to bitcoin, according to a Press release.
The trust product will use three institutional-grade key holders, a qualified custodian called Kingdom Trust, and a Bitcoin custodial service company. unchained capitalto ensure that bitcoin customer custody 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 move funds. The product is designed for those who want exposure to bitcoin without the trade-offs of full third-party custody, but are not yet ready to take the responsibility of full self-custody.
According to the press release, Onramp’s solution also aims to address limitations of existing Bitcoin fund vehicles, including single-point-of-failure custody, taxable events on withdrawal, and a lack of Bitcoin focus and education. .
The trust will have a “Bitcoin-only focus with a commitment to education and advisory services to help clients excel during periods of volatility,” the press release describes.
The product will also offer segregated accounts with the ability to take ownership of the underlying bitcoin without incurring a taxable event.