AnchorWatch vs Unchained: Which Bitcoin Custody Solution Is Right for You?

After the collapse of FTX, BlockFi, and Celsius in 2022, a simple truth became impossible to ignore: if you don't control your keys, you don't really control your Bitcoin. But pure self-custody carries its own risks. Lose your seed phrase, and your funds are gone forever.

This tension has driven demand for a middle path: collaborative custody, where you hold most of the keys while a trusted partner provides backup and infrastructure. Two companies have emerged as leading options in this space: AnchorWatch and Unchained. Both use multisignature technology to eliminate single points of failure. But they've made fundamentally different bets about what Bitcoin holders actually need.

The Core Difference: Insurance vs. Ecosystem

AnchorWatch has built its entire model around one premise: serious Bitcoin holders need real insurance. Their Trident Vault uses Bitcoin miniscript to create programmable custody with built-in timelocks and recovery mechanisms, all backed by Lloyd's of London policies covering theft, loss, coercion, and catastrophic events up to $100 million per client.

Unchained takes a different approach. Their 2-of-3 multisig setup (you hold two keys, they hold one backup) serves as the foundation for a broader financial services ecosystem. Beyond custody, they offer a trading desk, Bitcoin-backed loans, IRAs, and inheritance planning tools. As of 2024, they secure over 90,000 BTC across their platform.

Neither approach is objectively better. They're solving different problems.

How the Custody Actually Works

Both platforms use multisignature technology, but the implementations differ.

AnchorWatch's Trident Vault leverages Bitcoin's newer miniscript capabilities to create layered security. Think of it as programmable custody: you can set conditions like timelocks for inheritance or disaster recovery that execute automatically without requiring trust in a third party. The insurance component is embedded directly into the custody structure, meaning coverage isn't a bolt-on afterthought.

Unchained uses a more straightforward 2-of-3 multisig model. You generate and control two keys (typically stored on hardware wallets), while Unchained holds a third backup key. Any transaction requires two signatures, so Unchained alone can never move your funds. If Unchained disappeared tomorrow, you could still access your Bitcoin with your two keys.

Both eliminate the catastrophic risk of a single compromised key draining your funds. Both let you verify your holdings on-chain at any time.

Pricing: What You'll Actually Pay

AnchorWatch targets holders with $250,000 or more in Bitcoin. Their custody fee runs 0.02% per month (about 2.4% annually), with insurance starting at $4,000 per $1 million of coverage per year. There's also an onboarding fee that includes hardware devices. This isn't cheap, but institutional-grade insurance never is.

Unchained offers more accessible entry points. A basic vault costs $250 per year. Their Signature tier for high-net-worth clients runs $7,500 annually and includes concierge service. Trading fees range from 0.75% to 1.5% depending on volume, with a $2,000 minimum trade.

For someone holding $500,000 in Bitcoin, AnchorWatch's annual cost would be roughly $12,000 in custody fees plus insurance premiums. Unchained's basic vault would cost $250, though you'd pay more if actively using their trading or lending services.

What AnchorWatch Does Better

If insurance is your priority, AnchorWatch is the clear choice. Lloyd's of London policies aren't something you can buy off the shelf for Bitcoin self-custody. AnchorWatch spent years building the regulatory and technical infrastructure to make this possible, raising $3 million in 2023 from Ten31 specifically to scale this capability.

Their miniscript-based recovery mechanisms also address a real problem: what happens to your Bitcoin if you die or become incapacitated? Traditional self-custody leaves families scrambling to find seed phrases. AnchorWatch's time-locked inheritance vaults, launched in 2025, provide a technical solution that doesn't require trusting a lawyer with your keys.

As AnchorWatch CEO Robert Hamilton puts it, the goal is ending the binary choice between full self-custody and handing everything to a custodian.

What Unchained Does Better

Unchained has been at this longer (founded in 2016, headquartered in Austin) and has built a more complete financial ecosystem. If you want to borrow against your Bitcoin without selling, trade larger amounts through an OTC desk, or hold Bitcoin in an IRA, Unchained handles all of this under one roof.

Their partnership with BNY for ETP custody signals institutional credibility. The 2025 desktop app expansion makes the platform more accessible for users who prefer native applications over web interfaces.

For someone who views Bitcoin custody as one piece of a broader financial strategy, Unchained's integrated services create genuine convenience. You're not stitching together separate providers for custody, trading, and lending.

The Counterargument: Is This Complexity Necessary?

Both platforms add layers to what could be simpler. A $100 hardware wallet and a carefully stored seed phrase provide genuine self-custody without annual fees or counterparty relationships.

For smaller holdings, the economics often don't make sense. Paying $250 or more annually to secure $10,000 in Bitcoin represents a 2.5% drag on your investment. A Trezor or Coldcard has no ongoing costs.

The complexity of multisig setups can also create new failure modes. Managing multiple hardware wallets, understanding key derivation paths, and maintaining proper backups requires more technical sophistication than single-signature setups. For less technical users, the added security might be offset by increased risk of user error.

These solutions make the most sense when holdings grow large enough that the cost of loss outweighs the cost of protection.

Making the Decision

Choose AnchorWatch if:

• You hold $250,000 or more in Bitcoin
• Insurance coverage is a priority (perhaps for fiduciary or estate planning reasons)
• You want sophisticated inheritance and recovery mechanisms built into the custody itself
• You're comfortable paying premium pricing for premium protection

Choose Unchained if:

• You want collaborative custody without insurance requirements
• You plan to use Bitcoin-backed loans, trading, or IRA services
• You prefer an established platform with a longer track record
• You're looking for more accessible pricing tiers

The post-2022 landscape has made one thing clear: the question isn't whether to take custody seriously, but how. Both AnchorWatch and Unchained represent thoughtful answers. The right choice depends on whether you're primarily protecting against external threats (where insurance matters) or building Bitcoin into a broader financial life (where integrated services matter).

Neither replaces the need to understand what you're doing. Multisig reduces some risks while introducing others. Before committing to either platform, make sure you understand how key recovery works, what happens if the company fails, and what you're actually paying for. The best custody solution is one you fully understand.