Security is a top priority for any institutional investor considering Bitcoin.
The decentralized nature of Bitcoin means that there is no central authority to recover lost funds, making robust security protocols essential.
However, security must also be balanced with ease of use and accessibility.
SimplB’s multisig solutions provide the perfect balance between security and control, allowing institutions to confidently invest in Bitcoin while minimizing risk.
Our 2-of-3 multisig structure ensures that clients retain full control of their Bitcoin while reducing the risk associated with managing a single private key.
In this setup, the client holds two private keys, and a trusted fiduciary partner (or SimplB) holds the third.
This means that any transaction requires two of the three keys to be signed, ensuring that no single key holder can unilaterally transfer the Bitcoin.
This structure provides several important advantages:
Security: By distributing control across multiple keys, multisig reduces the risk of theft, hacking, or loss of funds due to a compromised private key.
Redundancy: If a key is lost, the Bitcoin is not. The two remaining keys can still authorize transactions, providing a fail-safe mechanism.
Fiduciary Oversight: The presence of a trusted fiduciary partner ensures that institutional investors have an additional layer of protection, particularly in cases where regulatory compliance or governance procedures require oversight.
At SimplB, we work closely with our clients to tailor their multisig arrangements to meet their specific security and operational needs.
Whether the client prefers to hold two keys themselves or delegate more responsibility to their fiduciary partner, our goal is to provide a flexible and secure solution that meets the highest standards of institutional investment security.
SimplB’s 2-of-3 multisig solutions provide the perfect balance between security and control, allowing institutional investors to confidently manage their Bitcoin while minimizing the risks associated with direct ownership.
