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AnchorWatch opens a Nevada-chartered bitcoin custodian with a $10,000 fee cap and up to $370 million insurance
Summary
AnchorWatch Trust Company opened Monday as a Nevada state-chartered trust company and qualified custodian for bitcoin, saying the Nevada Financial Institutions Division has authorized it to act as a custodian, according to the company’s release and The Block.
Instead of charging a percentage of assets, it sets custody fees in fixed-dollar tiers by vault size, capped at $10,000 a month, so further purchases or price gains do not raise the fee above the cap.
Clients can pick a flagship model in which the trust company holds the keys required for qualified custody while clients, trustees or executives hold additional keys, or a model that splits key control among AnchorWatch, BitGo in the U.S. and CoinCorner in the Isle of Man.
Optional insurance backed by A+ rated Lloyd’s of London syndicates can be written with limits of up to $370 million per client, subject to underwriting, in policies issued in the client’s name.
Updates
- Update, : Oct. 19: Bitcoin Magazine also reported the launch, describing the service as aimed at public companies that hold bitcoin.
Key facts
- AnchorWatch said the insurance can cover loss of bitcoin from perils including violent coercion and kidnapping, and from AnchorWatch acting fraudulently, subject to policy terms, limits and exclusions.
- AnchorWatch said insurance is available only to U.S.-domiciled companies and subsidiaries and U.S.-resident individuals, while custody without insurance may be offered in more jurisdictions.
- The company said its Trident Vault has secured customer bitcoin for 20 months and has been audited or reviewed by Halborn, Doyensec and the Lloyd’s syndicates’ technical underwriters, and that it has completed a SOC 2 examination.
- The Block said the custodian’s clients include fiduciaries, public companies, trusts and high-net-worth individuals that need qualified bitcoin custody.
- Bitcoin Magazine said the service is aimed at public companies holding bitcoin, a group that has grown sharply as more corporations add the asset to their balance sheets.
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