Unchained Secures $2 Billion in Bitcoin Custody Milestone

Last Updated on 40 mins by Connor Brooke

Unchained, a prominent provider of bitcoin financial services, has achieved a significant milestone by securing over $2 billion in Bitcoin through its collaborative custody offering. This impressive feat represents a remarkable 37% year-over-year growth since October 2022, reflecting the increasing demand for Unchained’s trusted services.

The company has taken a strategic step to enhance the security of its collaborative custody product by partnering with Coincover, a well-known entity recognized for safeguarding and insuring more than 5 million crypto wallets. This partnership signifies Unchained’s commitment to reinforcing the protection of its clients’ digital assets.

Unchained specializes in multisignature collaborative custody, catering to a diverse clientele that includes institutional investors, corporate treasuries, government entities, and retail customers. This approach leverages the decentralized attributes of the Bitcoin network, requiring a minimum of two private keys to access Bitcoin holdings within an account. This dual-key security system is designed to mitigate risks associated with potential single points of failure, a concern that has been highlighted by recent incidents involving various custodians, lenders, and exchanges in the crypto industry.

Joe Kelly, the co-founder and CEO of Unchained, emphasized the importance of evaluating custody solutions carefully. He urged clients to consider two fundamental questions: “What happens to your bitcoin if their company disappears, and can they move or access your assets without your knowledge and consent?” Kelly expressed the belief that existing solutions often fall short in providing satisfactory answers to these questions and expressed excitement about advancing the industry with more robust delegated custody solutions.

The addition of Coincover to Unchained’s network further enhances custody security by distributing keys, ensuring that investors maintain full control over their Bitcoin holdings. This approach makes their assets immune to potential risks such as exchange hacks or collapses. With Coincover and Kingdom Trust as custodial partners, Unchained aims to safeguard clients’ Bitcoin against issues like rehypothecation or single points of failure, including security breaches or firm bankruptcies.

Dhruv Bansal, co-founder and CSO of Unchained, raised a crucial question about trust in the digital asset space, stating, “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 has expressed its commitment to further expanding its collaborative custody network by forming partnerships with additional firms. Additionally, the company plans to offer options where clients can retain control of their private keys, providing them with even more flexibility and security in managing their Bitcoin holdings.

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