Onramp, a bitcoin financial services firm, has launched a spot bitcoin trust that uses a multi-signature (multisig) capability to enable multi-party custody, where a group of separate custodians each hold a private key in a multisig arrangement. Onramp has partnered with qualified custodian Kingdom Trust and bitcoin financial services firm Unchained Capital to create a 2-of-3 multisig model, to give clients direct exposure to bitcoin without self-custody or the risk of trusting a single custodian. Each unit of the trust will be equivalent to one BTC, and clients will be able to process in-kind redemptions without triggering a taxable event. Onramp's offering sets it apart from Grayscale's bitcoin investment fund, which does not allow in-kind redemptions. Onramp plans to work with securities lawyers to reduce the 12-month lock-up period for redemptions and ensure compliance in all jurisdictions where it offers its services.
(By Frederick Munawa)
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