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Multisig Platform Introduced by Bitcoin Asset Manager Onramp, Welcomes BitGo as Custodian Partner

Oct 24, 2023 at 08:45 am

Onramp, a prominent player in the realm of Bitcoin-focused financial services, has taken a significant step by officially launching its innovative asset management platform. Notably, BitGo, a renowned name in the cryptocurrency custody space, has been enlisted as one of the key custodians responsible for ensuring the platform's robust security measures. This development signifies a notable advancement for Onramp, which is headquartered in Austin, Texas and initially gained recognition by introducing a spot Bitcoin (BTC) trust back in April, primarily catering to high-net-worth investors.

What sets Onramp's asset management platform apart is its firm reliance on a multisignature (multisig) security framework, mirroring the approach adopted for their trust offering. In this security model, several custodians collectively manage and control the private keys associated with the Bitcoin holdings held within the platform. Among these custodians, BitGo plays a pivotal role, working in collaboration with other trusted entities, including Coincover and Kingdom Trust. The custodial arrangements are aimed at strengthening the security posture of the platform, with a specific focus on eliminating potential single points of failure in the custody of digital assets. This initiative ultimately fosters a heightened level of trust and confidence among institutional investors and high-net-worth individuals looking to enter the world of Bitcoin investment.

Bitcoin-only trend

The launch of this platform underscores a prevailing trend in the cryptocurrency space towards Bitcoin-exclusive services. This shift in focus aligns with the growing demand from clients seeking exposure to Bitcoin without the complexities and uncertainties associated with the broader digital asset market. BitGo, a prominent participant in this shift, has recently joined forces with the financial services firm Swan to establish the very first Bitcoin-only trust company within the United States.

Michael Tanguma, the co-founder and CEO of Onramp, offered insights into this market transition, highlighting the flight towards quality and safety that Bitcoin-only products and services represent. He is of the opinion that Bitcoin offers a unique level of regulatory clarity that sets it apart from many other digital assets. Notably, BTC has been classified as a commodity by both the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). This consensus among regulators regarding Bitcoin's classification has provided a clear path for investors. In Michael Tanguma's view, it is becoming increasingly apparent that Bitcoin isn't just another cryptocurrency; it may very well be the only cryptocurrency that warrants significant exposure.

Read more: New Crypto Bill Aims to Strengthen Investor Trust Amidst Market Volatility

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