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Bitcoin Financial Services Firm Swan Unveils 'Collaborative Custody' Service

Swan and Blockstream's plan to allow users to retain ultimate control of their bitcoin while knowing that is stored in a highly secure way

Updated Oct 5, 2023, 7:00 p.m. Published Oct 5, 2023, 7:00 p.m.

a rank of safe deposit boxes — (Shutterstock)

Bitcoin financial services firm Swan is introducing a "collaborative custody" service using Blockstream's hardware wallet Jade.

The Swan and Blockstream tie-up will enable users to retain ultimate control of their BTC$113,488.17 while knowing that it is stored in a secure way offline, the two firms announced Thursday.

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Collaborative custody, in this instance, refers to a multi-signature wallet scheme combined with third-party assistance for things like backup and transfer, thereby enhancing the user experience of bitcoin storage, the firms said.

Crypto platforms often face the challenge of offering users the peace of mind their assets are secure without having users keep personal responsibility of their financial safety, through managing their own keys and so on.

However, the collapse and capitulation of several centralized crypto platforms — most notably crypto exchange FTX in November 2022 — reminded many unfortunate users who lost access to funds of the adage "not your keys, not your coins."

There is a natural demand for services that can offer both greater security of assets and a straightforward user experience simultaneously.