Key Takeaways

• Multi-institution custody distributes key control across three independent institutions. No single institution can access your Bitcoin or be compromised in a way that results in loss.
• Clients do not hold a key themselves, but retain full control through explicit authorization and legal title to their Onramp account.
• Every transaction requires two video verifications with two independent institutions, ensuring no malicious actor can move funds.
• Keys are generated offline, sharded, and reconstructed only in secure, air-gapped environments—true cold storage with no exposure to online attack surfaces.
• The model eliminates single points of failure inherent to traditional custody models and simplifies long-term Bitcoin security relative to self-custody.

First, What Is Multi-Signature (Multisig)?

Before we explain multi-institution custody, it helps to understand multi-signature technology or “multisig” for short.

Multisig is native to Bitcoin. It’s not proprietary, experimental, or closed source; it’s a core feature of the Bitcoin protocol and has been battle-tested in real-world use for over a decade.

In fact, many of the most trusted custodians in the industry, including BitGo, Fidelity, Coinbase, and Anchorage, use multisig internally to secure client Bitcoin. It’s the industry standard for eliminating single points of failure within an organization.

At its core, multisig means that more than one private key is required to sign a transaction. Instead of relying on a single private key (like a seed phrase), multisig setups utilize an "m-of-n" model: a certain number of signatures (m) are required out of a total number of keys (n).

The most common configurations are 2-of-3 or 3-of-5. For example, in a 2-of-3 setup, three private keys exist, and any two are required to move funds.

This structure offers strong protection against loss or theft. If one key is lost or compromised, the Bitcoin remains secure and can still be accessed using the remaining keys. It also provides redundancy, something a single signature wallet does not offer.

And because multisig is based on open-source Bitcoin standards, the integrity of any custody model built on it is verifiable.

There’s no black box, no proprietary software, and no need to trust a single company’s claims. Clients can independently confirm how their assets are secured, on-chain and transparently.

What Is Multi-Institution Custody?

Multi-institution custody is the next evolution of multisig custody.

Rather than choosing between self-custody, where individuals manage their own keys, or third-party custody, where a single custodian controls all the keys, multi-institution custody distributes the governance and security across multiple institutions.

Each institution operates independently, with no shared control or operational dependencies, further reducing systemic risk.

• No single institution can move funds alone or be compromised, resulting in a loss.
• Clients don’t manage or store keys themselves in this custody arrangement.
• Control remains with the client—always.

Clients have their own multi-institution vault, verifiable 24/7 on-chain, giving them confidence in the storage of their Bitcoin without the burden of managing seed phrases or passwords.

And rather than wallets that generate a 12- or 24-word seed phrase, Onramp’s keys are created offline using high-entropy, institutional-grade systems.

There are no seed phrases to lose or leak.

At Onramp, we like to describe it this way: “MIC is 10x the security in 1/10th the time and friction of other custody solutions.”

How It Works: Quorum of Quorums and Sharding

What makes multi-institution custody unique is its “quorum of quorums” design, a layered system built to eliminate single points of failure and ensure that no single institution or individual within an organization can control or lose the Bitcoin.

Here’s a simple way to think about it:

Imagine a safe that requires three keys to open. Now imagine that each of those keys is broken into separate parts, and those parts are stored in different locations within various organizations, with different personnel. No single person within an organization can unlock the safe.

That’s the core idea behind multi-institution custody: no single person or place ever has the full ability to access your Bitcoin.

Now, here’s how that works in practice, technically speaking:

Each of the three institutions holds one key in a 2-of-3 multisig setup. But each of those keys is itself sharded, split into multiple cryptographic fragments distributed across separate individuals and locations. These shards ensure that no one person, inside or outside the institution, can reconstruct a full key on their own and subsequently sign a transaction.

When a transaction is initiated by the client, the two independent institutions must:

• Complete video-verification checks with the client to confirm legitimacy.
• Reconstruct their key from shards in an offline, secure environment.
• Sign the transaction in a 2-of-3 quorum.

Here’s how it works in practice:

• The client initiates a withdrawal from their vault, entering the amount and destination address.
• They complete a video verification with the first key agent.
• The first agent independently reconstructs their private key offline and provides the first signature.
• The client then completes a second video verification with the second key agent, who independently reconstructs and signs.
• Once both signatures are complete, the Bitcoin is sent.

This process typically takes 24–48 hours, depending on client responsiveness. You can check out this video for more details on the withdrawal process.

This layered approach means that even if one institution is compromised or unavailable, your Bitcoin remains safe.

An attacker would have to successfully breach multiple independent institutions and several individuals within them, a task that is exponentially more difficult than compromising a single custodian.

It also adds geographic and operational redundancy, making the system more resilient to physical failure, downtime, cyberattacks, wildfires, and other natural disasters.

Common Misconceptions About Multi-Institution Custody

We speak with investors like you every day, helping them navigate the trade-offs and decisions that come with securing Bitcoin for their family or business.

Here are a few of the most common misconceptions about the model:

❌ “Do I hold one of the keys?” No. You do not hold a key yourself. Each of the three keys is held by a separate, independent institution, you are not burdened with key management.

❌ “Is this only for institutions?” No. Despite the name, multi-institution custody is designed for individuals, too, investors who want robust security without sacrificing control.

❌ “If I don’t hold the key, do I lose control?” Not at all. You retain full control over your account. Institutions can only sign transactions with your explicit instruction and approval.

Your Bitcoin holdings are independently auditable on-chain 24/7 in your own MIC vault.

What Makes This Different from Other Custody Models?

Self-Custody

• Security: Managed by you and your family
• Control: Full control
• Complexity: High — you manage keys

Third-Party Custody

• Security: Relies on a single custodian or exchange
• Control: Custodian controls Bitcoin
• Complexity: Low — but high trust on a single institution

Multi-Institution Custody

• Security: Distributed, audited, insured
• Control: You have control of your Bitcoin
• Complexity: Low — no ongoing management of keys

Onramp's Solution Includes:

• Institutional-grade key generation (offline, air-gapped, high-entropy)
• Sharded key storage across secure locations
• Video-verified signing processes
• Insurance on every account through Lloyd’s of London

Final Thoughts: Security Without Sacrifice

If you're serious about securing your Bitcoin for the long term, it may be time to graduate from DIY setups and centralized platforms.

Multi-institution custody gives you peace of mind without complexity.

No seed phrases to manage. No blind trust in a single institution. No single point of failure.

It’s everything Bitcoin investors need for long term stewardship of the asset: secure, simple, and purpose-built for generational wealth.

Multi-institution custody is becoming the standard for Bitcoin investors seeking unmatched security, operational resilience, true control without complexity, and seamless access to financial services as their Bitcoin holdings grow in value and as a percentage of their net worth.

Ready to Learn More?

At Onramp, we pioneered multi-institution custody to provide a safer, smarter way to secure your Bitcoin.

Learn more about our multi-institution custody solutions. → https://www.onrampbitcoin.com/products/multi-institution-custody

Our team is here to support you in your decision-making process. We’ve guided thousands of clients and can help you make the right decision for your circumstances - book a consultation.