Onramp, a Bitcoin-only financial services company, has recently unveiled an ambitious institutional-grade asset management offering that builds upon a comprehensive multisignature, multi-institutional, and multi-jurisdictional custody platform. This innovative approach positions Onramp as a 21st-century full-reserve Bitcoin bank, taking advantage of Bitcoin’s revolutionary technology through partnerships with esteemed institutional custodians such as BitGo, CoinCover, and Tetra Trust.
Founded in Texas in 2022 by Michael Tanguma, a former executive at Google and Unchained Capital, Onramp aims to democratize access to institutional-grade custody. The company provides a broad spectrum of financial services for Bitcoin users of all sizes, including Individual Retirement Accounts (IRAs), trusts, Bitcoin-backed loans, inheritance planning, and tax-advantaged accounts.
Operating globally, with the exception of nations sanctioned by the U.S. such as Venezuela and Iran, Onramp extends its services not only to institutions but also to Bitcoin enthusiasts with over 10% of their portfolios invested in the asset. The company has achieved profitability, reportedly managing billions of dollars in assets under custody while maintaining a lean team of over 25 employees.
At the core of Onramp’s offering is its commitment to harnessing the paradigm shift in financial security that Bitcoin enables. The company leverages Bitcoin’s smart contract tools, particularly the multisignature (multisig) script, a high-security and low-complexity set of programming tools inherent to the Bitcoin protocol. These tools serve various functions, from facilitating payment networks like the Lightning Network to providing greater wealth protection than traditional banking options.
Historically, wealth custody has been limited to two primary models: physically securing assets like gold or entrusting them to reputable banks in exchange for IOU notes, a system that gave rise to fiat currency. Both methods come with risks – the first is susceptible to crime while the latter is vulnerable to financial fraud. Bitcoin disrupts this conventional paradigm by providing a distributed network that transcends local jurisdiction barriers, boasting over 80,000 copies of itself globally.
The blockchain’s proof-of-work mechanism ensures the integrity of its transactions, but its programmability allows for sophisticated transaction structures that respond dynamically to predetermined conditions. The most prevalent use of this scripting language manifests in multisig accounts, which require multiple independent signatures to authorize transactions. This arrangement offers a new form of security, reducing reliance on conventional custodians while enhancing resilience against political and economic instability.
Onramp’s multi-institutional custody model is set apart from traditional Bitcoin storage methods, where users often rely on high-tech exchanges or hardware wallets. By employing three independent custodians—BitGo in the United States, Tetra in Canada, and CoinCover in the United Kingdom—Onramp diversifies risk across jurisdictions and institutions, unlike more concentrated custody options.
Tanguma highlights the alarming reality that a significant portion of Bitcoin’s wealth remains locked in hardware wallets, with a considerable share concentrated among prominent providers such as Ledger and Coinbase. He projects that as Bitcoin’s value escalates, issues of custody will need addressing; the existing concentrated models may not scale effectively with the potential market growth. He encourages the Bitcoin community to explore creative solutions to protect and distribute wealth as the ecosystem continues to evolve.
