AnchorWatch opens Nevada trust with $10K monthly cap on bitcoin custody fees

AnchorWatch, a company specializing in bitcoin custody and insurance, announced that its state-chartered trust company in Nevada is now operational and provides qualified custody services to fiduciaries, public companies, trusts, and high-net-worth individuals.

The trust company, which received authorization from the Nevada Financial Institutions Division to serve as a custodian, began operations on Monday, AnchorWatch said.

This service targets public companies that hold bitcoin, a group that has grown significantly as an increasing number of corporations have added the digital asset to their balance sheets.

AnchorWatch Trust Company has launched a bitcoin custody service that provides up to $370 million in insurance per client.

"Its clients include fiduciaries, public companies, trusts, and high-net-worth individuals requiring qualified bitcoin custody." — The Block

AnchorWatch's main distinguishing feature is its fee structure — annual fixed-dollar fees that vary by vault size, with a monthly cap of $10,000, in contrast to the percentage-of-assets fees common among qualified custodians. After a client reaches the cap, further bitcoin acquisitions or price increases do not raise the annual fee.

"For large enterprises, the pricing cap will translate to potential six- or seven-figure annual savings for qualified custody," the company stated in its announcement.

ATC provides two qualified-custody options. In Flagship Custody, ATC retains the keys necessary for qualified custody while the client's trustees or executives hold supplementary keys. The other is multi-institution custody, in which key control is split among three entities: AnchorWatch Trust Company, BitGo (U.S.), and CoinCorner (Isle of Man).

This multi-institution approach tackles a rising worry for institutional bitcoin holders — the risk of relying on a single custodian, a concern heightened by previous industry failures.

Clients can also request insurance policies issued in their own name or that of their entity — a model that AnchorWatch says differs from policies held in the custodian's name, which can create uncertainty about the client's claim standing. The insurance is underwritten by AnchorWatch and supported by A+ rated Lloyd's of London syndicates.

AnchorWatch, as a Lloyd's of London Coverholder, states it can underwrite up to $370 million in coverage per ATC client for bitcoin losses due to violent coercion, kidnapping, or fraudulent acts by AnchorWatch itself. This coverage is contingent on underwriting approval and policy conditions.

Insurance eligibility is limited to U.S.-based companies and subsidiaries as well as U.S. resident individuals. Custody services without insurance may be offered in more jurisdictions, pending KYC and AML checks.

The company reports that its Trident Vault custody platform has protected client bitcoin for 20 months. It has undergone audits or reviews from Halborn, Doyensec, and the technical underwriters at the supporting Lloyd's syndicates.

AnchorWatch characterizes itself as a bitcoin-focused insurance and custody firm, with ATC serving as its Nevada state-chartered trust subsidiary.