CoinCorner Partners with AnchorWatch to Launch Multi-Signature Bitcoin Custody Service with Lloyd's Insurance

CoinCorner Launches Multi-Signature Bitcoin Custody Service

CoinCorner, a leading cryptocurrency exchange based in the UK, has entered into a partnership with AnchorWatch, a US-based Bitcoin custody and insurance infrastructure company. This partnership officially launches CoinCorner's advanced multi-signature (multi-sig) cryptocurrency custody service, Vault, aimed at both institutional and individual investors.

This service is designed to achieve a balance between the extremely high robustness of traditional cold storage and the convenience of everyday use. The most significant feature of the system structure is the strict division and distribution of the management of multiple private keys required for transaction approval between two independent specialized companies based in different jurisdictions (CoinCorner based in the Isle of Man and AnchorWatch based in the US). This mechanism creates a structure where it is fundamentally impossible for a single company or individual to unilaterally move assets externally, successfully eliminating the risks associated with single points of failure (SPOF).

Conditions for Using the Custody Service and Operational Mechanism

The Vault provided by CoinCorner has an annual fee set at 1.5%, with monthly pro-rata balance calculations processed on the first day of each month.

There are no long-term contractual obligations for use, allowing users to request deposits and withdrawals at their discretion. Withdrawal requests are immediately reflected in the company's regular account balance, while additional deposits are reflected sequentially as the active balance for the following month due to management considerations.

Furthermore, this service is purely focused on custody and security protection, clearly distinguishing itself from "interest-bearing accounts" that lend or utilize deposited Bitcoin to third parties. Users are not pursuing yields but are paying for security strength and a robust compensation environment through the Lloyd's market. Additionally, it features flexible customization options that allow users to add and set their own identity verification rules on an account basis.

Compensation through Lloyd's Insurance and Regulatory Considerations

Bitcoin assets deposited in the Vault are accompanied by private insurance underwritten by the globally renowned Lloyd's of London market. This ensures direct security compensation against incidents such as accidental loss of keys or unauthorized access by malicious third parties.

However, it is important to note that this compensation is limited to private insurance contracts covering technical and structural troubles, differing from investor protections based on public legal systems such as the UK's FSCS (Financial Services Compensation Scheme) and FCA (Financial Conduct Authority).

Moreover, losses due to market price fluctuations or business failures are not covered, requiring users to correctly understand the contract conditions.

Technical Convenience and Underlying Security Needs

In the cryptocurrency market, there have been significant leakage incidents in the past, such as firmware defects in single-signature wallets and vulnerabilities in recovery phrases, leading to damages exceeding $100 million. As a result, multi-signature technology has been regarded as the most reliable safety measure, but traditionally required extremely high expertise, such as preparing multiple hardware devices and managing backups independently.

The partnership between CoinCorner and AnchorWatch resolves this complex technical process by having specialized companies handle it behind the scenes. Users can enjoy strict security from specialized institutions and the peace of mind of Lloyd's insurance without the burden of advanced knowledge or self-managed key management.

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