21 May 2024
As we take the concluding tenth and final step in “10 Steps to Self-Sovereignty”, we’ve articulated nine ways that Bitcoin can enable the sovereign individual. But what about building the sovereign Bitcoin business? From longer timeframe accounting practices to managing a bi-weekly payroll, to using a volatile asset that operates on a 24/7 market, there is no shortage of needed techniques and technologies that enable entrepreneurs to leverage bitcoin for their companies.
As companies delve into the state-change of money that is Bitcoin, they are confronted with a myriad of novel questions and considerations that demand careful attention and strategic planning. From security concerns to regulatory compliance and operational efficiency, managing Bitcoin on a company’s balance sheet requires a security-focused approach.
A Sat Stacked Is A Sat Earned
The most effective and efficient way for an entrepreneur to grow their bitcoin stack is to increase their revenue and denominate their long-term treasury with bitcoin. It sounds simple, and in many ways it can be, and yet business owners are constantly baited by speculative schemes outside of their core business functions – you know, the things they are actually good at – in order to catch some promised yield in an attempt to outperform bitcoin the asset. Sure, you could drop your fancy new business cards into one of those fishbowls at the host stand of your favorite new restaurant, but outside of that, there are no free lunches in business. And the Bitcoin business is much the same.
Bitcoin is a means to an end, not some get rich quick scheme, and treating it as something different can be ultimately detrimental to the sustainability of your bottom line, and thus, your business as a whole. Not every Bitcoin business should pull a MicroStrategy. In fact, probably no business should attempt to take on that much debt to gobble up bitcoin at a rate beyond their expected cash flows. One should hold the same principles to their business as they would to a pleb fresh out of their first orange-pilling – stay humble, stack sats.
Securing Assets and Mitigating Risks
Business use of bitcoin, in comparison to that done by individuals, often requires governance built in to the signing of transactions. While simple singlesig self-custody can be a solution for single-person businesses, larger organizations require more complex and robust solutions. For example, your business might need quorums or customizable permissions for subsets of individuals to manage a treasury or comply with local laws and regulations.
Secure Non-Custodial Storage
One of the foremost concerns for businesses venturing into Bitcoin is ensuring the security of their assets against external threats and even internal collusion. With cyberattacks on the rise and sophisticated hacking techniques constantly evolving, security is one of the most important aspects of running a Bitcoin business.
Bitcoin signing devices and encrypted hardware can provide a secure means for companies to mitigate risks related to cyber threats, man in the middle attacks, asset mismanagement and unauthorized treasury access. For larger Bitcoin businesses such as exchanges, you need a device built for that purpose. Most solutions use Hardware Security Modules (HSMs) for storage, built for long-term, high level cold storage.
Insurance if something goes wrong
Of course, risk management requires a backup plan. In any business context, insurance is a near-necessity, and the Bitcoin ecosystem is no different. By integrating vault governance best practices alongside reporting, businesses can insure their bitcoin treasuries.
Ensuring Compliance and Auditability
Navigating the regulatory landscape is a complex challenge for businesses involved in Bitcoin. Compliance requirements vary across jurisdictions, and for many entrepreneurs, adherence to regulatory standards is non-negotiable.
Scalability
In the fast-paced, 24/7 world of Bitcoin, automation and scalability are key drivers of success. While decentralization is paramount in Bitcoin, businesses must also grapple with their ability to scale.
From treasury management to decentralized lending operations and trading, managing diverse Bitcoin functions efficiently requires a unified approach. Maintaining control and visibility over Bitcoin addresses and their operations can be challenging, but it is crucial for businesses seeking to mitigate risks and optimize performance.
Today, businesses can leverage APIs and user interfaces to streamline their operations and inter-organization communication. Programmability of a company’s bitcoin management practices – can streamline decision making and resource allocation without sacrificing security.
Ledger Enterprise
Ledger Enterprise is an enterprise grade platform that provides businesses with a secure infrastructure for storing, moving and using Bitcoin at scale.
Ledger’s Enterprise is designed to be the most secure institutional platform and relies on Ledger unique Hardware expertise and technology to empower exchanges, custodians, banks, trading desks, and hedge funds to scale their Bitcoin operations securely. But that’s not the only service Ledger Enterprise offers: it also provides business owners all the tools they need to succeed.
Built for enterprise scalability, Ledger Enterprise comes with a fully customizable policy engine to match all business scenarios, allowing to eliminate the risk of internal collusion and providing unmatched control over your assets. Designed for business efficiency, it comes with powerful automation capabilities so you can streamline workflows, reduce manual errors, and enable seamless scaling of operations across teams, regions, and projects. By automating routine tasks and processes, businesses can focus on strategic initiatives and capitalize on emerging opportunities in the Bitcoin landscape.
It also offers a unique insurance program, protecting both small businesses, as well as large institutions, for up to $150 million USD worth of bitcoin from theft or loss.
Since regulatory compliance is important for all businesses, especially Bitcoin businesses, Ledger Enterprise provides advanced reporting tools and integrations with compliance partners to ensure that businesses can operate lawfully worldwide and in any jurisdiction.
Because Ledger Enterprise’s mission is to enhance the security of the entire institutional ecosystem, it continuously innovates to introduce new solutions. As with Ledger Enterprise TRADELINK, which enables asset managers and institutions to trade off-exchange. This allows to prevent FTX-like events by allowing secure trading without exposing assets to exchange vulnerabilities. By leveraging Ledger Enterprise TRADELINK, institutions can maintain robust security over their trading cycle for maximum peace of mind and best in class risk management.
Setting Up a Bitcoin Business For Success
As the Bitcoin network integrates itself into the legacy financial system, the need for a comprehensive suite of solutions emerges for the many new and unique challenges of running a business with bitcoin as a unit of account. Bitcoin businesses are growing, and so too are the challenges of keeping up with regulatory hurdles. It’s time for businesses to consider how to manage risk, reporting and operational efficiency in the digital era kicked off by Satoshi’s protocol.
Entrepreneurs should spend their time growing their business, working on their products, and delivering to their customers, not worrying about the responsibilities associated with being a self-sovereign Bitcoin business.
Ledger Enterprise stands out as a solution that addresses key challenges and unlocks opportunities in the digital asset landscape. From security and compliance to operational efficiency and scalability, this platform offers the tools and capabilities businesses need to succeed in the evolving world of Bitcoin. By leveraging Ledger’s technology and expertise, businesses can confidently navigate the Bitcoin landscape, seize opportunities, and drive growth in their bleeding-edge financial operations.
For more information about Ledger Enterprise and how it can empower your business in managing bitcoin securely and efficiently, visit Ledger Enterprise.