AnchorWatch Launches Trust Company in Nevada for Bitcoin Custody

AnchorWatch, a firm specializing in Bitcoin custody and insurance, has officially launched its trust company in Nevada. This new entity is designed to provide secure custody services targeted at fiduciaries, public companies, trusts, and high-net-worth individuals.

Official Opening of AnchorWatch Trust Company

According to announcements from the company, the Nevada state-chartered trust company commenced operations on Monday. The company received authorization from the Nevada Financial Institutions Division, allowing it to serve as a custodian for Bitcoin.

Innovative Pricing Structure for Large Enterprises

One of AnchorWatch’s standout features is its unique pricing model. Instead of traditional percentage-based fees, clients will pay fixed-dollar annual fees that are tiered according to their vault size, capped at $10,000 per month. This means that once a client reaches the cap, any further Bitcoin purchases or price increases will not lead to higher annual fees.

AnchorWatch highlights that this pricing structure can result in significant savings, potentially amounting to six- or seven-figure reductions in annual costs for large enterprises utilizing qualified custody.

Two Custody Models Offered

AnchorWatch Trust Company presents two custody models for its clients. The first is the Flagship Custody model, where the firm holds the necessary keys for qualified custody, while the client’s trustees or executives retain additional keys. The second model, termed multi-institution custody, diversifies key control across three entities: AnchorWatch Trust Company, BitGo, based in the U.S., and CoinCorner, located in the Isle of Man.

This multi-institution approach is particularly relevant for institutional holders of Bitcoin, as it mitigates concerns about concentrating custody with a single entity, especially in light of past failures in the industry.

Insurance Solutions for Added Security

In addition to custody services, clients have the option to purchase insurance under their name through AnchorWatch. This is contrasted with typical policies held in the custodian’s name, where clients might face ambiguity regarding their coverage. This insurance is issued by AnchorWatch and is backed by A+ rated Lloyd's of London syndicates.

As an approved Lloyd's of London Coverholder, AnchorWatch can provide coverage limits of up to $370 million per client, protecting against various risks including violent coercion, kidnapping, and fraudulent activities directly related to AnchorWatch's services. However, all coverage is subject to underwriting approval and specific policy terms.

Insurance is primarily available for U.S.-domiciled companies and individuals, though the custody services may extend to other jurisdictions, subject to compliance with KYC and AML regulations.

Proven Track Record with Trident Vault

The foundation of AnchorWatch's custody services is its underlying platform, Trident Vault, which has successfully safeguarded customer Bitcoin for over 20 months. This platform has undergone audits and reviews by reputable security firms, including Halborn and Doyensec, along with scrutiny from technical underwriters associated with Lloyd's syndicates.

Defined as a Bitcoin-native insurance and custody company, AnchorWatch is poised to enhance secure custodial services with the establishment of its Nevada state-chartered trust company. This innovative approach aims not only to streamline custody but also to provide tailored insurance solutions that meet the specific needs of its clients.