Onramp Launches Institutional Bitcoin Custody Platform With Global Multisig Security
Onramp, a Bitcoin-only financial services company, has recently introduced a new institutional-grade asset management service, which is built on their robust multisignature, multi-institutional, and multi-jurisdictional custody platform. This initiative positions Onramp as a modern-day, full-reserve Bitcoin bank that harnesses the unique and groundbreaking technology of Bitcoin. Collaborating with institutional custodians like BitGo, CoinCover, and Tetra Trust, Onramp aims to democratize institutional-grade custody by offering a comprehensive range of financial services to Bitcoin enthusiasts of all sizes.
Established in Texas in 2022 by Michael Tanguma, a former executive at Google and Unchained Capital, Onramp is committed to providing services such as IRAs, trusts, bitcoin-backed loans, inheritance planning, tax-advantaged accounts, and more to clients globally, except for nations sanctioned by the U.S. like Venezuela and Iran. With a focus on not only institutions but also Bitcoin OGs and individuals with significant holdings in Bitcoin, Onramp has quickly grown into a profitable business with billions of dollars in assets under custody and a dedicated team of over 25 professionals.
A Bitcoin Bank in Cypherspace:
Onramp’s approach to financial security leverages Bitcoin’s smart contract tools, particularly the multisignature script (multisig), which is a secure and user-friendly set of programming tools inherent in the Bitcoin protocol. These tools offer a wide range of applications, from facilitating payment networks like the Lightning Network to providing enhanced wealth protection beyond what traditional banks can offer.
Traditionally, wealth custody has revolved around burying valuables or entrusting them to banks for safekeeping. However, Bitcoin’s emergence has disrupted this paradigm by offering a decentralized network that exists globally and relies on a robust proof-of-work system for transaction validation. Bitcoin transactions are programmable, allowing users to create conditional transactions using multisig functionality, which requires multiple valid signatures for transaction approval.
Onramp’s Multi-institutional Custody:
Despite the advancements in Bitcoin custody, many users still rely on centralized exchanges or hardware wallets for storing their assets. Onramp’s multi-institutional custody approach involves collaborating with three independent custodians in different countries – BitGo in the U.S., Tetra in Canada, and CoinCover in the UK. This diversification of custodial partners reduces risks associated with single-country exposure, offering a secure alternative to concentrated custody options.
Michael Tanguma highlighted the dominance of hardware wallets in Bitcoin custody, emphasizing the need for innovative solutions to accommodate the future growth of Bitcoin. With a vision of scaling Bitcoin to accommodate trillions of dollars in wealth, Tanguma encourages the Bitcoin community to explore creative approaches to fulfill the promises of Bitcoin in the evolving financial landscape.
In conclusion, Onramp’s institutional-grade asset management offering and multi-institutional custody platform represent a significant step towards enhancing the security and accessibility of Bitcoin financial services. By embracing Bitcoin’s transformative technology and collaborating with reputable custodians, Onramp is poised to empower individuals and institutions alike in safeguarding their Bitcoin assets and navigating the evolving landscape of digital finance.
