AnchorWatch Trust Company has launched a Bitcoin custody service in Nevada, providing institutional clients with secure storage solutions. The service includes a choice of key-control structures and an optional insurance option backed by Lloyd’s of London syndicates. This marks a significant development in the cryptocurrency custody space, addressing concerns around governance, recoverability, and risk management.
The company offers two key-control models: one where AnchorWatch manages the keys while clients retain additional signing authority, and another distributing control among AnchorWatch, BitGo, and CoinCorner. Insurance coverage, with a potential limit of up to $370 million per client, is available but subject to underwriting approval and policy terms. This is not automatic coverage for all assets, emphasizing the need for careful policy review.
AnchorWatch positions itself with fixed-dollar custody charges, capped at $10,000 monthly, contrasting with the percentage-based pricing common in institutional asset services. Insurance costs are separate, adding to the overall cost structure. The service is designed for clients seeking regulated custody without concentrating all signing authority in a single institution.
The success of such offerings depends on the clarity of key arrangements, policy exclusions, and service reliability. Clients must understand the risks that remain uninsured, as the value of the product hinges on these factors. As the market evolves, AnchorWatch’s model could influence the broader adoption of secure, regulated custody solutions in the crypto space.
This development highlights the growing demand for institutional-grade custody solutions, reflecting the maturation of the Bitcoin market and the need for robust risk management frameworks.