The Evolution of Bitcoin Custody: From Exchanges to Multi-Institution Vaults (Webinar)
September 18, 2024
Bitcoin custody has evolved through distinct eras: exchange custody (convenient, but repeatedly catastrophic), single-signature hardware wallets (sovereign, but a single point of failure with a heavy operational burden), collaborative multisig (stronger, but the holder still manages keys), and multi-institution custody, where independent regulated institutions each hold one key and no single party can move funds. The right model scales with how large bitcoin is as a share of your net worth, and inheritance is the test most setups fail.
A recorded webinar covering Onramp's research report The Evolution of Bitcoin Custody, authored by Chief Strategy Officer Brian Cubellis, with co-founder and CIO Jesse Myers, Head of Private Wealth Cam Stromme, and Jackson Mikalic.
Jesse opens with the firm's thesis on bitcoin as an investable asset, the digital-scarcity framing and full-potential valuation work that Michael Saylor has cited in his own presentations, sizing bitcoin against a roughly $900 trillion global asset landscape.
Brian then walks through the report: how custody has evolved from exchange accounts through hardware wallets and collaborative multisig to multi-institution custody, and the failure modes each era exposed.
The panel discussion is the heart of it: why even the most technical self-custodiers struggle with key management over decades, how custody requirements should scale as bitcoin grows from 1 percent of net worth toward 50 percent, why inheritance is the unsolved problem in most setups, and the honest advice that getting coins off exchanges matters more than which custody model you choose. It closes with a live onboarding and dashboard demo and audience Q&A.
Frequently Asked Questions
What are the main types of bitcoin custody?
Exchange custody, self-custody on hardware wallets, collaborative multisig where you hold most keys with a provider holding one, and multi-institution custody where independent institutions hold the keys and no single one can move funds. Each era of custody emerged from the failures of the previous one.
How should custody change as my bitcoin grows?
The panel's framework: when bitcoin is under 1 percent of your net worth, the stakes of your custody choice are low. As it grows toward 10, 25, or 50 percent, the security, redundancy, and inheritance requirements scale with it, and the operational burden of managing keys yourself compounds accordingly.
Does Onramp think self-custody is wrong?
No. The panel is explicit that getting coins off exchanges is the most important step, and if a hardware wallet is how someone starts, that is a good outcome. Multi-institution custody is presented as the option for holders whose position size, family situation, or operational appetite has outgrown managing keys personally, whether for the whole stack or part of it.
This episode is editorial and educational content. Onramp does not provide tax, legal, or investment advice. Bitcoin is volatile and may lose value. Past performance does not guarantee future results.