Onramp launches Bitcoin trust using multi-signature feature

2023-04-14 22:01:25

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ChainCatcher news, according to CoinDesk, Bitcoin financial services company Onramp has launched a spot Bitcoin trust for high-net-worth investors, utilizing multi-signature for multi-party custody, where a group of independent custodians each holds one private key. Each unit of the trust will correspond to one Bitcoin, and clients will be able to process physical redemptions, redeeming the underlying asset (Bitcoin) without triggering a taxable event.

Currently, U.S. Bitcoin exchange-traded funds (ETFs) are not allowed to hold Bitcoin directly, typically holding Bitcoin futures contracts instead. Other investment funds, such as the Grayscale Bitcoin Trust (GBTC), do hold BTC but do not allow for physical redemptions.

Additionally, Onramp has recruited qualified custodians Kingdom Trust and Bitcoin financial services company Unchained Capital to create a 2-of-3 multi-signature model, meaning that two of the three entities need to sign transactions to transfer client funds. The goal is to allow clients to purchase Bitcoin directly without the hassle of self-custody or the risk of trusting a single custodian. (Source link)

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