CoinCorner Debuts Insurance-Backed Multisig Bitcoin Vault

CoinCorner, a British bitcoin exchange, has introduced a multisig BTC custody service. The service splits control of customer keys between the Isle of Man exchange and its US partner AnchorWatch, with holdings insured by Lloyd’s of London.

Announced Tuesday, the service charges 1.5% annually and is aimed at owners who want cold-storage security without managing hardware themselves.

The new service follows the Coldcard wallet hack, in which bitcoin holders using a single-signature wallet lost funds. Hackers exploited a firmware bug that caused weak seed generation in the devices. About $115 million was lost in the theft.

“Vault offers a simple non-technical setup for customers, and partnering with AnchorWatch means we can offer fully insured, multi-signature custody with the simplicity our customers expect from CoinCorner,” CoinCorner CEO Danny Scott said in a statement.

Customers can open a Vault and deposit any amount, but the bitcoin does not move into the insured wallet immediately, CoinCorner said.

Transfers typically occur on the first working day of the following month, and holdings can be verified on-chain via a wallet address provided by CoinCorner.

The companies said top-ups are allowed anytime. Customers set their own identity verification rules before funds can be moved.

CoinCorner added that it is the first service of its kind in the world.

Multisig has long been the choice for security-conscious Bitcoin holders to mitigate single-key risk, but it has also been regarded as too complex for anyone except the technically committed. Setting up a multisig wallet traditionally involves assembling several hardware devices, generating and backing up multiple private keys, and keeping track of which key sits where.

CoinCorner and AnchorWatch aim to simplify the process. Vault handles key distribution on behalf of the customer, providing the security benefits of multisig without the setup that has deterred most people.