AUSTIN, Texas--(BUSINESS WIRE)--Unchained, the leading financial services provider for bitcoin holders, today announced the addition of the blockchain protection provider Coincover to its network of collaborative custody partners. This addition further strengthens the firm’s multi-signature custody offering, which has seen 37% growth since Oct 2022.
Unchained’s collaborative custody solution enables bitcoin holders to have their private keys distributed among several entities, therefore assuring them that their bitcoin is not being rehypothecated or misused by institutions. The offering has become particularly appealing to investors as a risk-mitigation tool in an era where custodians and other institutions are regularly in the news for losing customer assets, whether deliberately or not.
“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?” questioned Dhruv Bansal, co-founder and CSO of Unchained.
As recently shown by Prime Trust, even qualified custodians with a structure that segregates customers’ bitcoin from their legal corporate entity can fall short due to human error, and courts are of no help once access to the bitcoin is lost.
“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 unilaterally move or access your assets without your knowledge and consent. We believe that the current solutions fall short of a great answer to both these questions, and we’re excited to move the industry forward with more robust delegated custody solutions,” said Joe Kelly, co-founder and CEO of Unchained.
With both Kingdom Trust and Coincover as key custodian partners, Unchained clients have the assurance that even if one of them fails, they will still have access to their bitcoin. Clients can even choose to hold one or more of these keys, which lets them guarantee that the bitcoin is not being rehypothecated.
The addition of Coincover to Unchained’s partners further strengthens its collaborative custody model, which enables investors to maintain sovereignty over their bitcoin—making their funds invulnerable to exchange hacks and collapses—without the risks of self-custody, such as loss of private keys. The fact that clients hold their own bitcoin keys, even when posting bitcoin to obtain a loan, is an assurance that Unchained is not able to singularly move or rehypothecate client funds, as now-defunct companies such as FTX and BlockFi did prior to their collapse.
In an effort to increase the accessibility for individuals and businesses to achieve security and assurance levels historically reserved for large institutions, Unchained will continue to expand its collaborative custody partnerships while also ensuring that clients remain in unilateral control of private keys. We will be evolving this solution into a network of keys through more partnerships that will be announced soon.
For more information, please visit unchained.com/private-wealth-and-enterprise.
About Unchained
Founded in 2016, Unchained is a top 10 bitcoin platform by assets secured and has helped thousands of individuals and businesses truly own their wealth by holding bitcoin keys. Unchained's collaborative custody model allows clients to access financial services while continuing to have the benefits of self-custody, the ultimate consumer protection in these uncertain times. For more information on Unchained, please visit www.unchained.com.
About Coincover
Blockchain technology is changing everything. However, it brings its own set of unique risks. Coincover exists to ensure everyone is protected, enabling them to innovate freely, without constraints. Coincover provides a complete blockchain protection solution, addressing the most significant barrier to mainstream adoption: trust. Our protection solutions ensure that access and assets are never lost. Founded in 2018, Coincover is backed by leading fintech and blockchain investors. Today, we help over 350 of the biggest names in blockchain, including Fireblocks, BitGo, and Ledger, protect themselves and their customers from theft, hacking, and human error. Visit www.coincover.com for more information.