Founders: Becca Rubenfeld and Rob Hamilton
Date Established: March 2022
Headquarters: Nashville, TN
Employee Count: Five (soon to be seven)
Website: https://www.anchorwatch.com/
Business Type: Private
After nearly three years of development, AnchorWatch has officially launched its flagship product: a collaborative Bitcoin multisig vault accompanied by an insurance policy.
The company refers to its innovation as the Trident Vault, leveraging Bitcoin’s smart contracts to implement features such as timelocks, multisig quorums, and spending stipulations. AnchorWatch provides insurance for the Bitcoin secured within these vaults as a Lloydโs of London Coverholder.
The integration of advanced technology with top-tier insurance safeguards AnchorWatch clients against risks like theft, fraud, kidnappings, and catastrophic incidents. This level of security is unprecedented in the Bitcoin sector.
โWe recognized a significant gap in insurance solutions for Bitcoin,โ said Becca Rubenfeld, co-founder and COO of AnchorWatch, during her conversation with Bitcoin Magazine. โSome risks, such as advanced wrench attacks or the unforeseen death of a customer with their keys, couldn’t be mitigated by technology alone. Our insurance approach fills those critical gaps.โ
The market is ripe for a service like this, as Rubenfeld’s team has received numerous inquiries about their offerings since the company’s official launch last month.
It’s interesting to note that Rubenfeld, who initially viewed Bitcoin merely as a speculative instrument, found her passion in aiding individuals and organizations in safeguarding and insuring their Bitcoin assets. This perspective ultimately led her to partner with Rob Hamilton at AnchorWatch.
The Birth of AnchorWatch
Rubenfeld and Hamilton’s initial conversations happened in group chat rooms on the Clubhouse app during late 2020.
โRob and I first connected in Clubhouse Bitcoin discussions,โ shared Rubenfeld.
โI was there seeking trading insights, and then I encountered some of the prominent figures in Bitcoinโleaders of Bitcoin companies, core developers, and notable cultural figures. We all felt the need for connection during quarantine,โ she explained.
โEveryone was craving social interaction, and we quickly forged friendships. I was introduced to Bitcoin quite rapidly in that environment.โ
During this intriguing period, which Rubenfeld affectionately calls her “Bitcoin masterclass,” she heard Hamilton talk about the necessity for Bitcoin insurance.
โRob was brainstorming innovative ideas and realized he had the technological know-how to develop self-custody insurance,โ noted Rubenfeld.
Influential figures in the Bitcoin community, like American HODL and Jason Williams, urged Hamilton to realize his concept, becoming among the earliest investors in the project. Soon, Rubenfeld felt a strong inclination to assist Hamilton in various capacities.
โRob was completely focused on building his MVP (minimum viable product), so I said, โHey, Rob, ensure you have a pitch deck and forecast figures, and by the way, do you understand much about insurance?โโ Rubenfeld explained.
Gradually, she took on multiple responsibilities, supporting Hamilton while he concentrated on coding. This experience allowed her to leverage skills acquired during her corporate career with major brands like Starbucks, Target, and American Eagle.
Initially volunteering her time, she quickly realized her passion during the first week when she pulled two all-nighters to help Hamilton.
โWe were intensely collaborating, discussing the vision all day long,โ remembered Rubenfeld.
โIt was exhilarating and fulfillingโeverything I had been seeking compared to my previous roles. A little over a week in, I told Rob that if we wanted to pursue this together, I would leave Starbucks and fully commit. He agreed, and shortly afterward, I joined as co-founder and COO,โ she recounted.
From that point, Rubenfeld and Hamilton dedicated themselves tirelessly for three years.
โWe spent over 12 hours a day in the office, working diligently,โ said Rubenfeld. โFortunately, our investors remained supportive as we transitioned from concept to reality.โ
Overview of AnchorWatch’s Offerings
AnchorWatchโs product enables users to manage and safeguard their Bitcoin through a distinctive multisig arrangement, with AnchorWatch maintaining some keys while insuring the Bitcoin through Lloydโs of London, a globally recognized insurance provider.
Rubenfeld elaborated on the productโs functionalities:
โAt its core, we are distributing Bitcoin custody across multiple keys over time,โ she clarified.
โTimelocks introduce a standardized way to handle Bitcoin, where both the customer and AnchorWatch remain required signers, establishing a unique model of collaborative custody,โ she continued. โGradually, additional spending options become accessible, enhancing disaster recovery and inheritance processes.โ
Simply put, this timelock technology, utilizing Bitcoinโs miniscript, allows clients to access their Bitcoin using varying key combinations over time. This is essential in instances of lost, stolen, or damaged keys or if keyholders become unavailable due to unforeseen circumstances.
AnchorWatch is only permitted to authorize transactions as long as the customer maintains their insurance policy. Should the policy be canceled, AnchorWatch can revert the Bitcoin to the pre-agreed address.
Importantly, AnchorWatch cannot unilaterally seize a customer’s Bitcoin; upon policy completion, the vault can be managed solely by the customerโs keys. This flexible structure empowers clients against multiple threats simultaneously, thanks to the combination of miniscript and insurance architecture.
The insurance policies start at a rate of 0.55% of the value of a clientโs Bitcoin assets annually, covering amounts from $250,000 to $100 million.
โWhat sets our solution apart is that while a customer is covered by an insurance policy and we hold financial accountability via Lloyd's of London, we also maintain a key and function as a required signer,โ Rubenfeld explained.
โThus, we can co-sign with the customer, or, in scenarios involving the customer's death or advanced wrench attacks, we can collaborate with a recovery institution,โ she added.
โWhen the insurance policy expires and the client opts not to renew, the vault can be solely controlled by the customerโs keys as stipulated in the Bitcoin timelocksโall of this is encoded at the protocol level, ensuring on-chain verifiability.โ
First Clients
Following the December launch, an enthusiastic response from potential clients proved immediate.
โThe initial feedback has been overwhelmingly positive,โ shared Rubenfeld. โWeโve received inquiries from approximately 180 interested parties.โ
She noted that the early interest mixes U.S. retail and commercial clients, leaning more towards retail. While some clients are insuring their entire Bitcoin holdings, others are diversifying their Bitcoin security across various custody solutions.
โOur typical retail client secures between 5 and 15 Bitcoin,โ added Rubenfeld. โAround 80% of those who have engaged our services are safeguarding Bitcoin valued at $300,000 to $3 million, and we are in discussions for underwriting several large clients with significantly higher policies.โ
Rubenfeld assured that AnchorWatch is equipped to manage larger accounts, and she is excited to introduce AnchorWatchโs product as corporate Bitcoin strategies gain traction.
She anticipates receiving inquiries from such clients as AnchorWatch establishes its position in the market.
โThey may initially observe from a distance to ensure their comfort level before proceeding,โ Rubenfeld noted.
โHowever, we have had significant commercial clients reach out, some possessing thousands of Bitcoin, starting with a $10 million policy to gradually secure a portion while evaluating our services. Our commitment to serving them generates confidence,โ she expressed.
โTheyโve indicated that if they are satisfied next year, they plan to transfer more Bitcoin to Trident for coverage.โ
The Pinnacle of Protection
Rubenfeld is confident that clients, both retail and corporate, will find AnchorWatchโs services indispensableโnot only protecting their Bitcoin but potentially their personal safety.
โWeโre positioned as an insurance provider, yet our genuine focus is ensuring the safety of individuals,โ stated Rubenfeld.
โThanks to the technology and insurance framework that combats wrench attacks, we are genuinely enhancing personal safety. Being an AnchorWatch client discourages wrench attacks due to the complexity of executing such a scheme with our vault structure and the fact that any stolen Bitcoin transitions into the insurerโs ownership,โ she elaborated.
โBacked by Lloyd's of London and our commitment to longevity as an insurance company, weโll pursue claims tirelessly,โ she stated.
Rubenfeld highlighted that attackers would face challenges in safely managing stolen Bitcoin for the entirety of their lives, especially given Bitcoin’s public ledger nature.
She envisions a trend where clients voluntarily reveal their association with AnchorWatch (though AnchorWatch will never disclose client identities without consent) as a deterrent for potential attackers.
โI foresee people enthusiastically stating, โIโm an AnchorWatch clientโdonโt even think about it,โโ said Rubenfeld with pride.
โOur mission is seriousโwe genuinely believe weโre protecting individuals.โ
