The Barbell Approach to Bitcoin Custody
Michael Tanguma | Chief Executive Officer
Apr 1, 2025
The Barbell Approach to Bitcoin Custody
Balancing Self-Sovereign Control & Multi-Institution Custody
Download Onramp’s latest report here…
Bitcoin’s evolution from niche asset to a cornerstone of generational wealth has outpaced traditional custody models, placing heightened pressure on holders who face sleepless nights over threats ranging from lost keys to institutional failures.
In this report, Onramp introduces the “barbell approach” as a pragmatic blend of pure self-sovereignty—where individuals hold and secure their own keys—and multi-institution custody (MIC), which distributes control across multiple, independent custodians.
By splitting one’s holdings, investors preserve the ethos of bitcoin’s censorship resistance while greatly reducing single points of failure and mitigating the risks of theft, coercion, and key mismanagement. This dual strategy not only improves operational security and simplifies access to critical financial services like inheritance, trade and lending, but it also reflects an evolving landscape in which trust must be wisely apportioned rather than avoided altogether.
In short, the barbell approach allows bitcoin holders to sleep better—knowing their wealth is protected by professional oversight on one side and fully independent ownership on the other—while laying the groundwork for a more resilient and future-proof financial legacy.