AnchorWatch Launches Bitcoin Custody Service With Up to $370 Million of Insurance Per Client

U.S. Bitcoin custodian AnchorWatch has launched a custody service offering up to $370 million of insurance coverage per client.

The Block reported on Oct. 19 that AnchorWatch Trust Company formally launched as a qualified Bitcoin custodian after receiving approval from Nevada's Financial Institutions Division. Its target clients include public companies, trust companies, asset-management custodians and high-net-worth individuals.

AnchorWatch offers two custody models. In the first, AnchorWatch manages the core private key required to hold Bitcoin, while the client, trustee or corporate executive holds an additional key. In the second, AnchorWatch, U.S.-based BitGo and Isle of Man-based CoinCorner split control of the private keys.

Custody fees are set at a flat rate rather than charged in proportion to the value of assets held. The monthly fee is determined by the amount in custody and is capped at $10,000. Once a client reaches that ceiling, no additional fees are charged even if Bitcoin holdings increase or prices rise.

Insurance is also available as an option. AnchorWatch said it can provide up to $370 million in coverage per client through Lloyd's of London underwriting syndicates with an A+ credit rating. Actual coverage and policy limits are determined after underwriting review.

The insurance can also cover Bitcoin losses resulting from violent threats or kidnapping. Clients may also be compensated for losses caused by fraudulent acts by AnchorWatch, depending on policy terms and underwriting conditions. Policies are issued in the name of the individual client or corporate entity.