British bitcoin exchange CoinCorner has launched a multisig BTC custody service that splits control of customer keys between the Isle of Man-based exchange and its US partner AnchorWatch, with holdings insured by Lloyd's of London.

The service, announced Tuesday, charges 1.5% per year and is pitched at bitcoin owners who want the security of cold storage without managing hardware themselves, the Isle of Man-based company said.

The rollout follows the Coldcard wallet hack, in which holders using single-signature wallets lost funds after attackers exploited a firmware bug in the popular devices that led to weak seed generation. Roughly $115 million was lost in the theft. The incident put a spotlight on the single point of failure in one-key setups, where a compromised or poorly generated seed can expose an entire holding.

“Vault offers a simple non-technical setup for customers, and partnering with AnchorWatch means we can offer fully insured, multi-signature custody with the simplicity our customers expect from CoinCorner,” CoinCorner CEO Danny Scott said in a statement.

Customers can open a Vault and deposit any amount they choose, though the bitcoin does not move into the insured wallet immediately, according to CoinCorner. Transfers typically occur on the first working day of the following month, and holdings can be verified on-chain through a wallet address the company provides.

Top-ups are permitted at any time, the companies said, and customers define their own identity verification rules that must be met before funds can move. CoinCorner added that it is the first service of its kind globally.

Multisig has long been the answer of security-conscious bitcoin holders to single-key risk, but it has often been dismissed as too cumbersome for anyone but the technically committed. Setting one up traditionally means assembling several hardware devices, generating and backing up multiple private keys, and keeping track of which key sits where. Because moving funds requires approval from more than one key, no single device or person can spend the coins alone — a structure designed so that one lost or compromised key does not have to mean lost bitcoin.

CoinCorner and AnchorWatch aim to remove that friction. Vault handles key distribution on the customer's behalf, delivering the security properties of multisig without the setup burden that has kept most people away from it. The Lloyd's insurance layer adds a safeguard familiar from traditional finance to a custody model built on bitcoin-native key security.

This article first appeared on Bitcoin Magazine and was written by Mathew Di Salvo.