3 October 2023
Unchained, a leading bitcoin financial services provider, has expanded its collaborative custody network with the addition of Coincover, a company known for protecting and insuring over 5 million crypto wallets, according to a press release sent to Bitcoin Magazine. This move aims to bolster the security of Unchained’s collaborative custody product, which now secures over $2 billion in Bitcoin, representing a 37% year-over-year increase since October 2022.
Unchained, known for its multisignature collaborative custody, caters to institutional investors, corporate treasuries, governments, and retail customers. This approach leverages the decentralized capabilities of the Bitcoin network, requiring a minimum of two private keys to access an account’s Bitcoin holdings. This security measure is designed to mitigate the risks associated with single points of failure, a concern underscored by recent incidents involving custodians like Prime Trust and Fortress Trust, lenders such as BlockFi and Celsius, and exchanges like FTX.
“When considering a custody solution, we believe clients should ask themselves two fundamental questions: 1) What happens to your bitcoin if their company disappears, and 2) Can they move or access your assets without your knowledge and consent,” said Joe Kelly, co-founder and CEO of Unchained. “We believe that the current solutions fall short of a great answer to both these questions, and are excited to move the industry forward with more robust delegated custody solutions.”
The addition of Coincover to Unchained’s network strengthens custody by further decentralizing keys, ensuring investors maintain full control over their Bitcoin holdings, rendering them immune to exchange hacks and collapses. With Coincover and Kingdom Trust as custodial partners, Unchained aims to protect clients’ Bitcoin against issues like rehypothecation or single points of failure, such as hacks or firm bankruptcies.
Dhruv Bansal, co-founder and CSO of Unchained, stated, “In a world where bitcoin is worth $1,000,000 per coin, will the largest bitcoin stakeholders continue to singularly trust any one single custodian?”
Unchained says it plans to continue expanding its collaborative custody network by partnering with additional firms while also offering options where clients maintain control of their private keys.