The trust will use three separate keyholders to provide the benefits of multi-signature custody to institutional investors.
Bitcoin on the Ramp launched the first-ever cash bitcoin trust product that uses multi-party custody. This product is suitable for high-net-worth individuals, businesses, and institutions looking to gain exposure to bitcoin, according to a Press release.
The trust product will use three institutional-grade keyholders, a qualified custodian named Kingdom Trust, and a Bitcoin custodial company Unleashed capitalto ensure that the bitcoin client custody does not have a single point of failure.
Onramp is the first trust to take advantage of a multi-signature setup, requiring a quorum to move funds. The product is designed for those who want exposure to bitcoin without the compromises of full third-party custody, but are not yet ready to take on the responsibility of full standalone custody.
According to the press release, Onramp’s solution also aims to address the limitations of existing Bitcoin fund vehicles, including single-point-of-failure custody, taxable events upon withdrawal, and lack of focus and education on Bitcoin.
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.