Blockchain financial service company Unchained Capital will now offer multi-signature and multi-institution cold storage solutions for borrowers who leverage its crypto-collateralized loans service. According to a company statement, the cold storage solution will be multi-institution and collaborative with code-level controls for the safe storage of cryptocurrencies.
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Earlier this year, Unchained closed[2] a $2.9 million round of venture funding to fuel the innovation in its wealth management and financial services offerings for long-term crypto investors.
Unchained Capital offers loans to individuals and businesses, accepting only bitcoin (BTC) and ether (ETH) as collateral. The crypto lending service can fund loans between $10,000 and $1 million within 24 hours, offering 5.99 percent annual interest rate on loans over a period of six months or less. The platform currently provides loans in 43 states in the U.S.
Multi-Signature[3] solutions require a series of keys to authorize a blockchain transaction, say three keys in total, where two would be required to sign a transaction. For most people who hold cryptocurrencies, they often use a single private key to authorize their transactions via their online or hardware wallets. A major problem with this custody option is that they are solely dependent on protecting a single private key. Losing this private key could result in loss of funds.
Unchained Capital's multi-signature and multi-institution cold storage solution is expected to safeguard the borrower's funds by distributing trust across three separate and independent parties: the borrower, the lender (Unchained) and an external third party. Two of the keys will be required for a transaction to be authorized.
To keep the counterparty risk low, Unchained Capital executed a Key Agent Services Agreement with Citadel SPV[4], to act as a third-party key agent which gives it the
