Today, we have a special guest, Becca Amilee, co-founder of AnchorWatch, who joins us to discuss the importance of Bitcoin insurance for self-custody. Becca shares her journey into the Bitcoin world, her experience getting "orange pilled" on Clubhouse, and how AnchorWatch was born from the idea of providing insurance for self-custody of Bitcoin.
Becca explains the risks associated with self-custody and how AnchorWatch's platform, Trident Vault, offers a unique solution with their innovative MoneyScript technology. She delves into the spectrum of custody options, from single sig to multisig, and how AnchorWatch's model provides a middle ground with insurance coverage backed by Lloyd's of London.
We also explore the potential of using Bitcoin as collateral for loans, the importance of having a decoy wallet for security, and the future of insured Bitcoin-backed loans. Becca emphasizes the significance of insurance in protecting against risks like wrench attacks and the peace of mind it offers for inheritance planning.
Join us as we dive deep into the world of Bitcoin insurance, the challenges of self-custody, and the innovative solutions AnchorWatch is bringing to the table.
Resources:
- Becca Amilee on Twitter
- AnchorWatch
- AnchorWatch on Twitter
- Brad Mills on Twitter
- Lloyd's of London
- CoinCorner
- Natalie Brunell on Twitter
🔥 LISTEN TO EPISODE HERE
(00:00:32) Introduction and Welcome
(00:00:46) Meet Becca Amalie: Co-founder of AnchorWatch
(00:01:14) The Birth of AnchorWatch and Bitcoin Insurance
(00:03:40) Understanding Self Custody and Insurance
(00:05:31) AnchorWatch's Custody Platform: Trident Vault
(00:08:45) The Spectrum of Custody Options
(00:11:31) AnchorWatch's Multi-layer Security Model
(00:16:51) Inheritance and Beneficiary Protection
(00:19:40) Insurance Backed by Lloyd's of London
(00:26:10) Cold Storage vs. Hot Wallets
(00:29:45) Duress Protocols and Security Measures
(00:35:32) Decoy Wallets and Security Strategies
(00:41:31) Borrowing Against Insured Bitcoin
(00:46:31) The Future of Bitcoin-backed Loans
(00:50:31) Understanding Insurance Policies and Coverage
(01:01:40) Exclusions and Limitations of Insurance
(01:06:00) AnchorWatch's Vision for the Future
(01:09:40) Closing Remarks and Contact Information
❤️ SUBSCRIBE to Manifest with LOVE Newsletter
https://djvalerieblove.com/subscribe
🧡 SUPPORT THE SHOW WITH TIPS - Thank You!
https://getalby.com/p/djvalerie
💛 SUBSCRIBE TO THE PODCAST
YOUTUBE: https://www.youtube.com/@djvalerieblove
RUMBLE: https://rumble.com/c/c-6698813
WEBSITE: https://djvalerieblove.com/podcast
FOUNTAIN.FM: https://fountain.fm/show/761jhxFiibErm7eZZdlt
APPLE: https://podcasts.apple.com/us/podcast/dj-valerie-b-love-show/id1441540841
SPOTIFY: https://open.spotify.com/show/6kZfzFZ3wKmWiljDajrJZ5?si=a9433473b06f464b
RSS: https://serve.podhome.fm/rss/4996bcea-e098-5a89-ac63-af7a3df7cb5d
💚 FOLLOW DJ Valerie
X - TWITTER: https://twitter.com/djvalerieblove
FACEBOOK: https://www.facebook.com/djValerieBLove
INSTAGRAM: https://www.instagram.com/djvalerieblove/
LINKEDIN: https://www.linkedin.com/in/dj-valerie-b-love/
NOSTR: https://primal.net/djvalerieblove
🩵 DJ VALERIE’S FAVORITE TOOLS
BITCOIN MENTOR - FREE consult for self-custody https://bitcoinmentor.io/aff/love/
AUDIBLE - Get 2 FREE Audiobooks https://www.audibletrial.com/bitcoin
SHAMORY - Have Fun Learn Bitcoin 10% Discount shamory.com/love
SATSBACK - Get Bitcoin rewards when you shop https://satsback.com/register/Ezv2VLwKXgLd8X4Z
HEATBIT - 5% OFF Code = PEACE -Earn Bitcoin & Save $ Heating Your Home https://heatbit.com/?ref=LOVE
💙 DJ VALERIE’S FAVORITE EVENTS
https://b.tc/conference/2025/ Use code LOVE for 10% OFF
https://www.adoptingbitcoin.org/ Use code DJVAL for 10% OFF
https://sovereignminds.ca/
https://btcplusplus.dev/
https://baltichoneybadger.com/
https://bitblockboom.com/
https://unconfiscatable.com/
https://bitcoinunconference.com/
https://afrobitcoin.org/
https://oslofreedomforum.com/
https://denver.space/
💜 BUY, TRADE, STORE, MINE BITCOIN
HODL HODL no KYC https://hodlhodl.com/join/NMKLQ
RIVER FINANCIAL Buy Bitcoin Safely -Get Up to $100 in FREE Bitcoin https://partner.river.com/LOVE
TREZOR - Get 10% OFF Trezor 5.0 and Onboarding Call https://affil.trezor.io/SHcT
COLDCARD Discount 5%- Promo Code “PEACE” store.coinkite.com/promo/PEACE
SAZ MINING - Get $50 OFF your Bitcoin Mining Order https://app.sazmining.com/purchase?ref=DJVAL
🩷 DJ VALERIE'S FAVORITE IDEAS
WHAT IS VALUE FOR VALUE? - ADAM CURRY https://value4value.info/about/
[00:00:33]
Unknown:
Hey, aloha, love tribe. Welcome to the second Tuesday of the month. The women in Bitcoin meetup here at the Denver space. Yay, Denver space. We've got ladies here in the house. We've got people tuning in from around the world, virtually. And I have somebody here, Becca Amalie, who's a cofounder of AnchorWatch, who's gonna talk to us today about why it's important to have, Bitcoin insurance on your self custody and what she does with her company, AnchorWatch. Welcome, Becca. Thank you. Appreciate appreciate being here. Thanks. Yeah. Totally. So let's, like, hear about you. Let's hear how you got involved with, you know, how did AnchorWatch start AnchorWatch start for you and Yeah. You know, what's going on and what what's what's going on in your world, my friend? Yeah. Yeah. So, I mean, I, everything in my world kinda changed very quickly when I got Orangefield. So I was already trading Bitcoin, since 2019, without really understanding when I was trading.
In late twenty twenty and early twenty twenty one, I was in the large group of people, I think, who were orange filled on Clubhouse. So I I really got my knowledge there in this very intensive, you know, six or twelve month long period that all the experts were there. Everybody was hanging out. It was the middle of COVID. People were starved for, human interaction, I think. And there was just this wonderful little period where everybody was there taking all their time to educate others. So I got orange filled. I started working in the industry as kind of a side hustle. I was working for an angel investor, Brad Mills, who, is pretty well known on Twitter and and known well in the startup space because he, is very, very supportive of early stage companies. So I was starting to get a little exposure there, and then the idea for Anchor Watch was born actually there on Clubhouse, and I jumped in. My cofounder, who's Anchor Watch's CEO, Rob Hamilton Oh, wow.
Yep. You he is he's both technical, but, you know, he was also an econ major and a math major and, is a data scientist as well as the Bitcoin expertise. So, he initially, was chatting with some guys over the idea for Anchor Watch, which and the idea was simply, self custody insurance. If you're gonna hold your Bitcoin in self custody, it should be insured. There's a lot of risks associated with that. Security practices have developed, in the space kind of because there wasn't insurance. Right? Because, you know, it's all about self responsibility and taking accountability for for yourself, and this is in part the ethos of Bitcoin. And at the same time, this is people's nest egg. Right? Like, this this is your savings. This is your retirement plan. This is your inheritance plan, and taking into self custody just inherently, has some risks that you need to consider.
So that's how the idea was born. That just you should be able to hold your own Bitcoin, hold your private keys, and have it insured. And so it's developed from there, into what we are today, but I can I can pause there if you'd like? Well, so I'm just curious, Becca. I mean, because obviously we've got, like, you know, the whole, cypherpunk ethos of, like, oh, radical self custody and bury everything in the ground and don't let anybody know stuff. But then there's, you know, we were just all the ladies and I were, you know, having some, there's peony wine. Yay. Thanks, Ben, from peony wine, who's our sponsor. And, there you go, Ben.
But we were talking about kind of the spectrum of how people approach self custody. Right? And so there's, you know, obviously, single sig, there's multisig. Now you've got this insurance, product that's really powerful. And I think there's a lot of people out there who are, intimidated to do self custody. And a lot of people are intimidated to just, like, move even a hundred dollars of sats off of an exchange into a cold wallet, you know? And so, how do you help people on this on the spectrum as it were? Little teary eyed.
Also on the nose. Right? Like, how do you support them in their journey and understanding, like, yeah, if you've got whatever, a thousand bucks of Bitcoin, go ahead and stick it on your phone. But if you're starting to look at, like, I don't wanna lose this. I want my kids to have this, or I need this for, like, you know, some home repairs. Like, how are you supporting your clients on that journey so that they feel like their hands are held? Yeah. So here, let me let let me answer in two ways. First, quickly, let me refer to what AnchorWatch, supports, I guess, in terms of our business model.
But then I think there's there's answers beyond that to your broader question about custody options and that spectrum and how to support people at different stages. So AnchorWatch, specifically, we've built a custody platform. So we're it's not somebody else's software, that we're using. Like, we have built, a piece of software. It's called Trident Vault, and it allows you to do, self custody in a new way using this tech called MoneyScript, which we we can go in if you'd like to. But it it lets you do self custody in a more advanced way that hasn't been done before. And, additionally, when you use our custody platform, the pricing and what we charge for being our customer includes up to one to one insurance. So so far in the space, when you were looking at your options, whether you were looking at self custody, just like even from single sig on one end to, like, handing it all the way over to a full custodian who you're giving them their keys, you're letting them sit there, exchange as well. It's the same thing where they have they have your Bitcoin and you have an IOU.
Anywhere in that entire spectrum, there wasn't really an insurance layer. There just there wasn't insurance, and there's risks in every different model. So every model has trade offs. Right? Like, self custody has risks of theft, wrench attack, you know, risks of physical events, your house burning down, you know, just human error, making a mistake, forgetting where it is, dying, your family member not having kind of access to it, or or a good understanding of the back backup plan. So those are all risks on the self custody side. And then, like, at the other end, there's full custodians, and so they're taking the keys. On the on the plus side, they have, you know, corporate level compliance and governance and security parameters and structures and resiliency. And so they they do all this stuff at an institutional level.
That actually does create an immense amount of security. But, you know, as we've seen in the industry, you also have risks of bad actors, right, of people who maybe are not, like, pure bad actors, but companies who've gotten way over their skis financially and ended up in trading that just, like, fell apart. Right? So you have a lot of ways to lose your Bitcoin completely if you're on the full custodian side as well. And then all these different business models are in the middle, like collaborative custodians, right, who are using traditional multisig.
So it is self custody, and they're holding a backup key. Right? So there there is this huge spectrum. And to your to your question about, like, at different amounts, nothing makes you more comfortable than just trying. Right? So, like, I would say, you know, if you're nervous about doing a thousand dollars, don't do a thousand dollars. Like, do do something that you would literally just shrug off. Start with $20. Right? And just play around with it. You know, send it to to, from, like, when opportunities come up to to actually use it. Right? If if there's some service or a swag shop or something that you're trying to use online and they have a pay in Bitcoin pay in fiat option, choose the choose the pay in Bitcoin option and and go take your $20 and actually try to use it. So just build some comfort level there.
And I think all of them, as I said, have trade offs. But Anchor Watch came in with this idea that we were going to kind of counteract those trade offs as much as we could. And so we're counting counteracting. So we're in kind of the middle ground, right, between this pure pure self custody and handing your keys over to a custodian. So the Anchor Watch model is one where you hold keys, so you do have your own private keys. AnchorWatch also has our private keys, and we're both required signers. So it's different from collaborative custody where it's like you have your keys, they have a backup key, and you only really need them if you if something has happened. Right? Something bad has happened because, ultimately, you do have your two keys, and you could sign, without them. So it's self custody. Right? And so with AnchorWatch, it's different. We're saying, okay. You have keys. You must sign. AnchorWatch has keys. We must sign.
So that way, we're protecting you from a variety of different events, like losing your wallets, having them damaged, having them, stolen. Right? So if somebody steals your keys, but Anchor Watch has not signed, the Bitcoin is not moving. But then you have to you start getting into kind of that scenario, and you're like, okay. But then, you know, what happens if something else goes wrong? Or like, okay. So if my keys get stolen, I get it that Anchor watch, can kinda protect me because they're a required signer, but can't we not move the Bitcoin because my keys were stolen and you're a required signer? And that's where, this tech, mini script comes in, and it really allows us to start, utilizing Bitcoin security to your benefit using time locks.
And if you want I don't know if you have, do do I have the ability to share a screen? Would I be able to show you? Yeah? Awesome. So I can't I couldn't hear you right there, but I did figure out how to do it. I read it? There you go. I wanna do So what what I'm showing on screen here actually is Anchor Watches custody model. So, it's a lot on screen, but the tech is actually very simple. So what the tech is doing is taking, kind of traditional multisig. So most of you, I think, are probably familiar with multisig custody, self custody where, for example, it's a two of three. And so what you see here is when you sign up as a customer and you start using AnchorWatch for custody, you have your own two of three multisig wallet. So you have that, but also AnchorWatch has our own, and they're both required.
And so, ultimately, that is what the Bitcoin smart contract is checking. It's saying, look. Did this section sign? Did the two of three sign? Yes. And did Anchor Watch sign? If the answer to both of those is yes, then you can move the Bitcoin. And then with MiniScript, we can use time locks. So the way that we use time locks is we say, alright. And then after additional periods of time pass, the Bitcoin smart contract is actually checking, has this amount of time passed, six months, twelve months, whatever it may be? And if so, then there are other ways to protect the Bitcoin, to move the Bitcoin.
And so halfway through your insurance policy, they're one year policies, then we have a contingency for the customer losing access to two of their keys, but they still have one. So it would be the customer key plus the anchor watch key set. And then I like to skip layer three because it makes more sense in the context of layer four. If you'll see, we have this dotted line here. That's at the end of your insurance policy. So what would happen is if everything goes fine at this point, like, you know, there are no emergencies. Nobody has a a loss event. Nobody passes away. You know, just life is going on as usual. We come to the end of the insurance policy. It's time to renew for the next year. The customer and the Anchor Watch would actually come together and sign a transaction, and we kind of use this as a key health check annually.
But when we do that, it it effectively restarts the clock, and it would put you right back at the top of layer one. And so if everything is going fine, we're just gonna loop through these every single year. So it's like, you know, full protection, and then right at the end, we have this recovery layer. And I like to call that up first because one one more thing to point out is after the insurance policy ends. So if you choose not to be a customer anymore, if AnchorWatch disappears, if we go bankrupt, if anything like that happens, using time locks, as long as you still have those hardware wallets, as long as you still have your signing devices and the vault, information, you would still be able to control your Bitcoin. So even without AnchorWatch, again, once your insurance policy has ended and we don't have liability for you, it is just pure and simple, boring old self custody.
And so right before that, right before your insurance policy ends, we have this recovery layer. And I was setting this up because the recovery layer is actually then how we get to the insurance, the inheritance and the benefits there and why this vault actually it protects you from so many different things. Like, it protects you from human error, from making mistakes. It actually protects you from AnchorWatch and us being a sole custodian. It protects you from all sorts of thefts, including wrench attacks, things like that. And then the recovery layer allows you to be protected even if you pass away. So the recovery layer is one right before the insurance policy ends. You're still insured, and it would be one where, let's say, you pass away midyear, Anchor Watch and a another company, an additional company, we've selected. We use a company called CoinCorner. They're a Bitcoin only exchange out of The UK, out of the Isle Of Man. They've been in business for, I think, more than ten years, been holding customer funds, customer Bitcoin that whole time, never had a scandal or a loss or anything like that. So very responsible partners.
They have their own keys. Those keys are not your backup keys, and they're not our backup keys. They are their own keys that are preprogrammed into the vault, you know, so this is all verifiable on chain. And they, in combination with Anchor Watch, could come together and move the Bitcoin to a new location, to a safe location. So if you pass away, your beneficiary, either they would get in contact with us and say, hey. You know? My mom, my sister, my friend, whomever, passed away, and, you know, I'm the beneficiary in the policy. What do we do next? Or we would be trying to get in touch with, you know, the customer to renew the policy.
They would not be responsive. And, eventually, we would actually reach out to the beneficiary and say, hey. You know, we're looking for your wife. We're looking for your mom. Can you help us get in touch? And, ultimately, we'll find out that way, and we'd be able to say, okay. Good good to know. We would do our verification, of their identity, of death certificate, of that whole process. And and once we were, you know, comfortable that the situation was as it appeared, then Anchor Watch along with CoinCorner can move the Bitcoin to the beneficiary's preferred location. So if they want to keep holding Bitcoin, if they want to be our customer, we'll set them up with a new vault, we'll educate them, we'll we'll teach them what they know and take good care of them. If they wanted to do something else, if they need to liquidate the Bitcoin, then, of course, we would we would, help them and support them get the Bitcoin where where it needs to go to accomplish what they were trying to do.
But the big difference here, and I think it's worth calling out, the difference between kind of unassisted self custody, or even collaborative custody is the issue with all of all of self custody models is that you have to leave that treasure map for your family member. Right? So you have to start writing down in your, file cabinet, like, you know, teasers. You know, here, you know, if you go outside, under the tree, dig down six feet, you'll find where I buried the seed plate, but you can't actually say that on the in the file cabinet, right, because if somebody gets into your file cabinet, now they know where it is. So people get into these actually very stressful, you know, assembling of a treasure map and hope that their family member keeps track of it and remembers what half written down instructions mean or when the instructions say, hey. Reach out to this, you know, Bitcoiner who is trustworthy, and he'll help you through it, but that Bitcoiner, you know, has also passed away or just is not responsive.
So it's things like that that are actually very, very scary, and I I can speak for that personally too. When, you know, when I was using, like, before using our own platform and just doing pure self custody, I did the same thing. Right? Like, I told my parents and my sister and my grown son, you know, the treasure map information. And I was like, okay. So here's the thing. Like, all you need to do is, like, this one go to the one place, and, like, the map will will reveal itself to you. So all you have to do. Okay? And, like, my parents are like, got it. And my sister's like, got it. My son's like, got it. And I don't know, maybe four months later, six months later. I not that long. I I was having dinner with the whole family, and I was like, hey. By the way, does everybody remember the spot, the starting location?
And two of the three households, two of the three had no idea. They had no idea. They had one piece of information. Right? And and, like, my son was the only one who, even with me, like, prompting, could figure out, like, where it was and and remember. So it's very, very concerning, and so we built this, as a very, very lock tight, I would say, way to ensure that beneficiaries get the Bitcoin. It doesn't rely on that. And maybe the last thing I'll add is the insurance itself and how the insurance plays into this whole thing. So the insurance that we offer is backed by Lloyd's of London. And so Lloyd's of London is the the large, not the largest, but the oldest and, honestly, most trusted insurance provider in the world. So, a plus rated, pretty much the best of the best.
And the policy itself, when you get an Anchor Watch policy, you are getting a Lloyd's of London policy. We're what's called Lloyd's of London cover holders, and when we write a policy, it's on their documentation. It's on their authority. And it covers really a loss of Bitcoin to for just about kind of anything that that would give you a permanent loss of Bitcoin. And so I do like to call out that one of the things we do specifically cover, is if, AnchorWatch commits fraud. Because we get questions like, okay. The recovery layer makes a lot of sense for inheritance. Right? Like, I can see why you have this layer or AnchorWatch and this other company can you know, that makes sense. But what if what if Anchor Watch misuses layer three and this other company and the two companies collude together, and steal the Bitcoin? And I can tell you all the reasons why that shouldn't happen. Right? Like, it would destroy both our companies and we you know?
But it is also specifically protected by the insurance. If Anchor Watch participates in fraud or collusion that causes the customer to lose their Bitcoin, it is a covered loss. Okay? So, so we the tech itself and just Bitcoin being this highly secure, you know, invention. Right? I would say the tech is protecting you from a lot. Right? Just this construction of the vault and the way we're using time locks. We can protect you without the insurance in a lot of ways, but there's some ways, like Anchor Watch being a bad actor, that actually, like, the tech can't truly protect you and then the insurance does. And the other one is a really scary wrench attack. Right?
So wrench attacks are on the rise, they're not happening to ultra wealthy. Somebody was killed about ten days ago for $58,000 worth of Bitcoin, worth of crypto. Most of the public ones are under a million dollars. So, you know, that's that is a real concern, and so we cover that as well, if that if that were to happen. But I know that's a lot, but, yeah, I mean, we we go pretty deep on the custody side. So It's amazing. And, again, I think you guys I mean, is there any do you even have any competitors? It doesn't I don't see anybody in the market doing what you guys are doing with insurance. No. No. I would say you have to look at it two angles. Like, from custody providers, they're certainly competitors. Right? Because you can only put your Bitcoin somewhere.
Right? So But but I haven't seen any of the custody providers providing any insurance. It's just kinda like, well, good luck, motherfucker. Exactly. Exactly. Exactly. So, you know, they can build their reputation, but at the end of the day, if something went wrong, especially with companies that are not massive publicly traded companies with huge balance sheets that even if if they're good actors, right, and something goes very wrong, they just don't have the balance sheet to make you whole. And so, yeah, insurance plays a very, very important role. And, no, there there is no other way for a retail customer, for an individual, to get an insurance on their Bitcoin. We're the only way.
So it it's definitely a first in that manner. There there are certainly some players in the space, providing different types of insurance, maybe to custodians. But even there, the custodians, the large custodians, it's a drop in the bucket. Like, they've got a couple of hundred million dollars with worth of insurance, which is, you know, a nice slug of insurance, but they have billions or hundreds of billions in custody. Right? So if they have some sort of catastrophic, loss, if, internal bad actors, if employees, infiltrate their own systems to do some sort of major heist, that's gonna overwhelm that couple of hundred million of insurance, and you'll be effectively on totally on unprotected and uninsured.
So, yeah, it really is, first and kind of only way for individuals to get custody insurance, and we can serve up to a hundred million dollars. Right? So, you know, we can definitely take care of whales. On the pleb side, on the other side, the minimum policy size that we're allowed to write is $250,000. So it's not quite, I would say, it's not for your spending money. It's for people I would say you could consider it and decide if it's a good value for you, probably if you're a whole coiner because the cost annually of fully insured $250,000 policy, which, again, is the smallest I'm allowed to write, for most customers depending on their specific underwriting and some selections, you get to make some selections on your vaults in terms of security.
Most customers, would be paying somewhere between 1,100 and, like, $1,500 a year. For fully insured custody, use of the platform, the signatures, all the ops, any help you need. It's a very personal business, so it's a personal relationship, so lots of service. So at that price, you know, even if the percentage would be a little bit higher because that would be, you know, just you'd be paying, like, the equivalent of 1% if you have a hundred thousand dollars worth of Bitcoin and you're paying 1,100 a year or so. But in in terms of fiat out of your pocket for the amount of protection you're getting, you know, for the inheritance for custody services, that's that's where I think it makes sense. If you have less than a whole coin, I mean, it it certainly still works. It's still a very secure thing, but, you know, probably pure self custody, is probably sufficient until you're until you or or collaborative custody with one of the providers out there, just holding that back up for you. Those might be kinda good options as you work your way told towards a whole coin.
Oh my god. That's a lot, and it's great info. And I know that you probably have to so much. No. Dude, I know. I get it. And it's like, I'm sure there's even more. I have two questions. One, like, let's say I need to get out of the country fast. Right? And shit starts hitting the fan, and I'm like, I got my I need my Bitcoin. What how and and let's say you guys are not available, and I need to, like, get my Bitcoin so that I can go, you know, do whatever I need to go do. How could that work? Like, just I wanna make sure I'm understanding the top of this, Yeah. Yeah. Yeah. Graph graph over here because it looks like to me, though, just so I can clarify, on the left side of the the top level, I need to have two of three so that we're doing it, and you guys have your two of three. So what happens if you guys are MIA?
Where's my Bitcoin, and how can I access it? Right. Okay. So I would say, first of all, this is designed as cold storage. So it's not a hot wallet if whether it's because you're expecting a geopolitical event or, the law is coming after you or, you know, you're you know you're going to be making a giant purchase in three days, then probably just this doesn't make sense because it it is purposely adding some friction. Right, because it it slows things down. It gives the opportunity for human verification of things. Make sure you're not under duress. And so in that way, you know, literally, if you've got your go bag next to you and you're planning to jump the country, it it's just frankly probably not the not the perfect product. This is a KYC product. It's an insurance contract, so I have to, you know, keep track of that.
This is a product that is going after statistical protection. What are the things that customers are truly at risk of of losing their Bitcoin, and let's make sure that we're protecting those. You know, I said that the tech is protecting you from this huge number of, you know, kind of risks or perils. The insurance plugs the holes on a couple that can't. I do call out the one the one thing that, like, this this really can't perfectly protect you against is government seizure. So if government seizure is is right in the center of your personal bingo card of risk, it's probably not the not the best. So what I have is a lot of customers, actually quite a few so far, who have just told me upfront. They're like, look.
I have a non KYC stack. This is my government resistance stack. If I'm worried about sixty one zero two, if I'm worried about seizure for any reason, I've got, you know, x percent of my stack kind of stored in a way that's really, really conducive to that scenario. And then I have my my wife must inherit this. It must be safe. I cannot be poorer than x, and that's my Anchor watch stack. Right? That's my, like, ultra safe, protect you from everything kinda more realistic, and and have that. And then maybe they have some somewhere else. In terms of just daily operations, like, if you need to spend Bitcoin, typically, we would be doing our compliance and make doing our side of the signatures within about a business day.
So that would be normal. Depending on cutoff, it might be next business day. And then we do, as a protective thing, we reserve the rights to slow it down for your protection. So if you put in a transaction request, something about it, like, it doesn't match the behavior you told us. You said you weren't gonna be spending money this year. Like, you you told us about your life because it's a personal relationship. Right? And then all of a sudden, you're trying to drain your vault. You know, let's let's maybe instead of a normal Zoom call, let's maybe get on another Zoom tomorrow, right, or the day after. Right? Are there any special, like like, duress, you know Yeah. We have those you guys can say, like, oh, I'm a if if I say, you know, muskrat or something, you know, like, that signals to you that I'm on a duress.
We do have duress protocols, for sure. And what that can allow us to do is call law enforcement. Right? So that gives us the time. Right? And so but we could do that even without you remembering to do that. Right? Like, just if you know, we've met you. Like, we've now spent, what, forty minutes on a call together, and so I'm learning your facial expressions. I'm learning how you communicate. And if that in combination with you telling me your expected spending habits and then we get on a Zoom call and you're behaving off, even if you are too nervous to do your dress word or whatever it may be, you know, we can still we can still use our judgment. And if you talk to the fraud department at banks that are serving high net worth clientele, right, so name brand banks, they're serving customers that have 5 and 10 and $20,000,000, and you talk to their fraud department, it is that human it's that human level. It's relationships.
And so, for example, if they have a situation where they think, there's fraud taking place, like, something about it, The first thing they do is they try to go get the personal banker who has met with that customer before, even if only once or twice, and trying to get them on the call as well so they can use tone of voice, that they can recall, you know, just the behavior of this customer and see if that can help. So, you know, that that element of human protection is really important. And so, you know, that is the anti speed approach. Right? This is this is a safety product, not a not a flexibility product, if that makes sense.
Yeah. It makes total sense. And and just, curiously, you know, for storytelling purposes, have you had to deal with that? Like, have you had experiences where you're like, okay. I gotta start doing this thing because I think that somebody's under duress. You don't have to say who it is if it's happened, but I'm just curious. Like As a rule, I would say we're probably not going to get into specifics ever, of our customer situations, and I think every situation will be bespoke. But I'll I'll say, given that we've we've just, recently launched, no. We're lucky that none of our customers have undergone, attacks quite yet, but we we pay really, really close attention to what's going on in the world. And they're, you know, Jameson Lomp tracks a lot of the public ones, actually, like, amazingly, like, is very, very diligent about it. And so anything that's reported publicly, you know, he's tracking, other people track as well, and they're retweeting them.
And multiple things always jump out at me. So one is the size of the, stolen funds. They're often smaller than you would expect. Right? It's just simply the Bitcoin and crypto in general are just viewed as easier to transact. Right? Like, if you can force the person, if you can scare them into handing over your private keys, it's perceived as being kinda easier to move. So, even if the amount of fiat equivalent is not enough to draw thieves to you in your normal life like, you might drive a a beautiful car and live in a beautiful home, and yet you're not a target. Right? But if you're known as having a lot of crypto or or you've shared that around, it's definitely increasing your odds right now, and that's what we're seeing in the data.
The other thing that I would call out is that, unfortunately, there are a lot of events that are not recorded in that list. Right? So and in including a lot of public ones or, I'm sorry, successful ones. And and, you know, that's just a reality of people wanting to preserve their safety. You know, if if you were a victim, and, you know, it was resolved and everybody's lives were saved, there are a lot of situations that are not going to do that person any favors by telling the media about it. Right? And so there there are actually a lot that are not well known. And so I just I think it's without ever being inflammatory.
I think it's something that people should really be thinking about. And if they're not super public about their holdings, I think they should consider staying that way. Right? And, getting getting your fulfillment from the world around you, from your family and friends, that doesn't involve, you know, talking about your your holdings and the size of your stack or anything like that. And, again, just for just being safety minded, just don't forget what I'm telling you, which is the size is not that high to make yourself a target. So low profile is best. We built a product, obviously, that we hope protects people if they ever found themselves in that situation. I just want you to get yourself out of the situation and safely. Right? Like, insurance claims happen. That's part of the business.
And so, you know, there's a lot of, like, yeah. We wanna see Anchor Watch. Like, are they gonna pay? Like, are they gonna if it if it fits the coverage in the policy, if the loss occurred because of events that is covered in the policy, absolutely. Lloyds is going to pay. Right? So nobody, what we want is it to be a high quality product that if people are in that situation, that, you know, people can just say what they need to say, get themselves out of the situation, hand over what they need to hand over, and not be doing some math in their head about, like, how hard and how much they should should lie and, to try to, you know, push the thieves in the wrong direction. Just stay safe. Just stay safe. We so the ladies and I I'm gonna get your question in two seconds. Like, so we had, one of our our our women here.
So two things. We were talking about having, like, a decoy wallet. Yep. You know, if we're having, you know, the wrench attacks and stuff like that. And then, and then I'll let you ask the questions just a sec, but we had somebody who had two friends who had two separate, hacks that were trying to get into their wallets in different ways. You know? And so, what's your thought on decoy wallets? And what would you say to folks, you know, because, again, you want to, appease the attacker so they just say, okay. Cool. I got what I think I need. I'm gonna leave you alone, whether it's Right. 505 hundred bucks, 5 thousand bucks, 50 whatever it might might be. Obviously, it's gonna be different if you're at, like, at a mansion in Mar A Lago or something versus, like, you know, my little house. You know? Like, okay. Cool. I got 500. Great. So I guess here here's the thing.
I would say from what I am learning, and seeing, you you don't just because of the level of your wealth does not automatically automatically mean that that matches the sophistication of the thieves. Right? And so I think a decoy wallet is is fine, and, you know, it's almost like cards, right, that you have to decide how big is big enough. And, like, so do you put do you load $500 on a on a decoy wallet? Do you load $5,000 on a on a decoy wallet? Honestly, whether that's gonna work or not is gonna come down to the standards of the thief. Right? Like like Do they believe you? Do they do they believe that that's, like, your staff? You and, like Yeah. Are they willing to walk away with that? Right? Yeah. They're like, hey. Well, fuck it. Right? So it's like and you can't predict that, really, because you don't know who this this future thief is. So you my opinion is, look, if it makes you feel better, you could load load up a decoy wallet with an amount of your I mean, with an amount you wanna keep on a single sig or something like that because now you've exposed that to new risks. Right? If it's a single like, so that's maybe you don't wanna throw $5 on it because if if the single sig has damaged your loss, you know, now you're at $5. I wouldn't want to be.
So I I definitely think you can, but just picture the situation, right, and how unpredictable that can be and how many different movie scenes of thief types. Right? Like, if it's some tweaker, right, who's just like, do you have crypto? Give it to me. Right? And you're like, here's $500. Take it. Take it. That that might be, like, a payday. Right? And they run away happy as can be. If it's somebody more sophisticated, they they've seen you on Bitcoin Twitter. They know you have it. You know, they, you know, maybe as a woman, you're easier to attack, and so they're they're coming for you. Right? And so maybe they're not gonna be okay with 500. You throw a decoy wallet at 500, and they're like, oh, fuck off. I know I know you have more than 500. Like, cute. Cute, but, like, uninteresting to me. Like, gun to the head. You know, give me the actual Bitcoin. Right?
And so it's it's not that I think people's attempts at security are are misplaced because it might work. Right? It might work. You know, being armed might solve a situation, right, even with sophisticated things. If they're not expecting you to pull a weapon out and then you shoot them in the face, Like, maybe it'll work. Right? And so it's not that I think any self defense is wasted or silly or things like that. It's just that it's not guaranteed. And when it comes to a wrench attack, a sophisticated wrench attack, right, as you're getting to smarter thieves, they actually can get through anything, just about anything security wise, including a company's protocols, including duress words, including that including you holding no keys at all. Right? Because I could still put a gun to your head and be like, call your custodian and tell him to send the Bitcoin, or I'm going to kill you.
You know? Not holding keys actually doesn't protect you either. And so our thesis is ultimately there's actually only one solid protection, and that's insurance to take care of you if it happens anyway. Wow. Yeah. And yet another another question. Remind me of the second. That that will the second question was it because I was thinking about the sixty one zero two and, like, you know, government taking in the stuff. So you're you already addressed that. But, like, we've got a couple of the ladies here asking some questions in the audience. So Yeah. Yeah. Can you lend against your insured Bitcoin? Can you lend against your insured Bitcoin?
Great question. Not literally today, but it's coming. So It's coming? Well, actually, I mean, is the question borrow against borrow borrowing is coming. Bar borrow against yeah. Borrow against your yeah. Oh, yeah. So for those who maybe are watching and aren't kinda familiar with with the ask here, what's what's been asked is, in the industry, people have been holding their Bitcoin for a long time. They don't wanna sell it. They believe number, you know, goes up into the right over time, and so they're not interested to sell it. But they would like some liquidity. They need some fiat in their lives. They can afford monthly payments. And so what they're trying to do is borrow take out a fiat loan, borrow money against their Bitcoin as collateral, the same way you could borrow against your home if you own own your home. And so they're trying to use the Bitcoin they already own as collateral to back a loan.
And so the question is with Anchor Watch, can you do that? Can you have your Bitcoin in the vault? And here, I can I can stop sharing that as well? So you can have your Bitcoin in the vault, and can you, at the same time, borrow against it and use this collateral? So, again, today today, the answer is no. But we're working on it, and, the idea would be probably next year. So in 2026, you would be able to. So that we'll be rolling that service in, and that way the collateral just stays there in the vault. We are already working to ensure some private loans.
So we have some customers where the customer found a bank, for example, who is willing to do a Bitcoin backed loan with them, but they organized it. And the bank said, like, okay. You know, we're willing to do this on an over collateralized loan, but, like, where is the Bitcoin collateral going to be held? You know? We're not comfortable with you holding it alone. Who's going to hold it? Is it going to be insured? And so they've pulled us in more or less as the custody provider for their loan. So, that's that's a way you could do it today. So if you were a customer, wanted to be become a customer, you've already found somebody else to do the loan with you with so you have kind of both counterparties, the borrower and the lender. You together could absolutely use Anchor Watch today, to, get that collateral insured.
And I think what we will see is that banks will be more willing to do that, for you when the collateral is insured. So, hopefully, you're getting better rates. You're you're actually able to find the banks willing to do it and then potentially lowering your rate by a point or two because they feel just a little bit safer. Like, the collateral is not going anywhere. We've agreed with both the borrower and lender how signatures would happen in the case of liquidation. You know, since we we're using this distributed keys, you know, we have actually a lot of control over, okay, who's gonna hold the keys, what would happen in a liquidation, who's gonna sign, how much time. Right?
But because this is all very, very flexible tech, we were able to use that, today, to provide insured custody for loans. I think that's such an important topic because, you know, we're seeing a lot of people doing, you know, there's a couple companies out there that are doing, you know, mortgages with Bitcoin. There's some that are doing seconds with Bitcoin. And so Yep. I think it's it's such an important opportunity. My ex husband and I had a hedge fund. I mean, he's still running it, but, it was doing seconds and, you know, short term loans, you know, hard money for for fix and flippers. And so I was like, gosh, you guys. Like, what if we what if we started helping people take seconds out, you know, and buy Bitcoin, hold the Bitcoin, and then just pay down the loans, you know, but you need to have it in escrow. You need it whatever, multisig. But I like the idea of it being insured because then you're gonna have, I think, a more, comfortable position, you know, instead of feeling like, oh, god. Like, who the heck has got the Bitcoin? And is it really gonna get paid? And am I gonna pay down this, you know, the second or whatever it is? So so this is, I think, a huge market that's burgeoning.
And you guys are the only ones that I see again, like, putting insurance on the Bitcoin. And so that makes a lot of, like, wow. I know you can't you probably have, you know, you can't disclose everything, but are you seeing more people using this as, like, a loan, like, you know, mechanism, like, with insurance to, like, do this? Seen a ton of activity in the industry in at large. So I'm seeing we're seeing all sorts of new capital come into the market, so on the lending side. Right? Yeah. So Cantor Fitzgerald, right, they made a huge announcement. Others are are coming in with with serious pools of capital. Now a lot of those are coming in with stables versus, like, I believe Unchained actually lends fiat, right, which for some people is much more active. Like, just put money in my bank, versus, like, these extra hops of of stables and maybe tax things that people need to make sure they're paying attention to. Right?
But regardless of how an individual company is choosing to turn this service on, it is happening. Right? Yeah. So all all over the industry. So I think I think what will happen is, everybody, I think, who has the tech stack to enable Bitcoin backed loans, I think, will offer it. That's this is my prediction. Like, I just think, literally, everybody, if you have a liquidity source, if you have the tech that can do this safely, you'll offer it. The way Anchor Watch is approaching it, again, is, I guess, through two lenses. One, the way our vault is constructed with the different keys and the different entities that hold keys is actually really ideal for Bitcoin backed loans. So we're we will be setting ourselves apart because the vault itself is more ideal and then the insurance itself. So we'll be insuring our old our own product, and offering insured, Bitcoin backed loans.
But then also, I can other companies who are doing it, Anchor Watch is a Lloyd's of London cover holder. So I can just sell them the insurance. Right? So they can use their own thing. They can do their own thing. They can go after their own customers, and I can still provide insurance and hopefully lower the cost of capital for everyone. And and the more I mean, transparently, the more insurance I sell, obviously, I'm I'm happy about it. But the more I can spread this around to multiple providers doing things in maybe similar but a little different way, and they serve different subcategories of customers. These guys serve commercial. These guys serve high net worth. These guys serve plebs.
The more diversity I can get, utilizing the insurance from an insurance standpoint, the lower the risk gets. Yeah. And I think about, like, the the like, with real like, with real estate exact you know, if you're looking at, like, a a second, for example. Right? You're gonna have a double collateralized loan because you're gonna have a second on the real estate, and you're gonna have Bitcoin. So to me, that lowers the risk of, you know, anything getting paid back. And so, hopefully, that could lead to a lesser, Right.
Right. Fee for that. So Yeah. You at home. Yeah. Okay. So one of our gals has a question. Mhmm. Do they pay our balance so that we know the amount that they can pay out at any moment is covered by their treasury, or is it an FDIC situation where we just hope that everybody doesn't go to the bank at once and ask Do the amount of loans they insure always is that always covered by how much they have to pay out? Is it always a one to one loan? Loan or insurance? You're talking about what we need today. So if if everyone cashed in their policy at once, are they able to pay it up? And do they do they provide or, like, are they very transparent on how much they're holding?
Got it. So we will know that at any moment in time, one or every insurance policy cover. Yes. Yes. Yes. She's got. Can you hear this okay? You're good? I I I heard that. So let me let me just clarify some things because, explaining how it works, I think, gets you the answer plus the knowledge. So let me just kind of approach it that way. So first of all, we are ensuring your individual vault. So when you sign up with us, we are creating your vault. It is your location on the blockchain. You can go to your vault's address on mempool.space, and you can be looking at your balance and checking it at any time.
So we are and then we are writing an insurance policy on that Bitcoin address, on that output descriptor, and the list of addresses that can be generated by your vault and your vault online. When you buy an insurance policy then so you have this vault with your Bitcoin in it. The value of the Bitcoin is fluctuating every day, right, with your with the price of Bitcoin. When you sign up, you choose a dollar amount, and this is for regulatory reasons right now. In The United States, we can't do Bitcoin denominated policies. So in The United States, I can't currently write you a 10 Bitcoin policy. I could write you a $1,000,000 policy or a $837,000 policy. Right? So, what that means and the way that works just in terms of the policy first, and then I'll get to your question about could we pay in, kind of a serious event.
So the way it would work, I like to use the analogy of fine art. It's just a very easy analogy because these policies work very similarly. So let's say you buy a painting. Okay? So you're an art collector. You've bought a high value painting. You had it appraised. It was appraised at a million bucks. So you took out a million dollar insurance policy that, let's say, has a 10% deductible. So like any property insurance, if you have a claim, you're taking that haircut. And so if your painting was stolen, you would get paid out the million minus 10%, and you would get a $900,000 payout on on your stolen painting. Right?
And so then what happens if halfway through the year so halfway through the year, your painting has not been stolen. Everything is fine, but your your favorite artist is, very popular, has had an upsurge of some surgeons in popularity, and that painting is now a $3,000,000 painting halfway through the year. So far, you bought a $1,000,000 painting, that's how much or insurance policy, that's what you paid for, and that's what you have. So now you have a choice that you can make. You can say, I am not comfortable being underinsured. Like, I that's I'm not in a comfortable position. I've got this expensive painting, and it's in my home. I'm still at risk. I don't wanna risk losing all that accrued value, and so I'm gonna call my insurance guy, or gal.
Right? I, now that I am one, I guess I need to account for that. But you're calling your insurance guy, and you're saying, like, hey. My painting, that I have that million dollar policy on, actually, it's had an amazing year. It's worth 3,000,000. I wanna up my insurance policy. I'd like to keep it fully insured. Can I raise my policy to 3,000,000? Insurance guy is gonna be happy about that. He's just gonna write you an invoice for a prorated okay. So here's the increase that you would owe for the next four and a half months until the year is up. And once you pay that, you have a $3,000,000 policy.
So, one, you are always getting the the amount of insurance you pay for, and then it's up to you how closely you want to track the value of your Bitcoin. Right? And so I think there's, like, a a trade off in, like, how you wanna spend your time versus always being fully insured, and then people some people choose not to, and we do allow that. So some people say, look. My family's all in on Bitcoin. We're very heavy. Like, we can't lose this. I never want my family, to be poorer than x. I would if I die, I would like to make sure that the Bitcoin is safe and sound so the family can pay off the mortgage and can do this and can do that. So you know what? I'm going to buy a $3,000,000 insurance policy even though I have $6,000,000 of insure of Bitcoin in my vault.
And that's enough for me. I don't I don't really wanna pay for more than that, and that's enough that it really reduces the risk of wipeout for my family, and so that's what I'm gonna buy. And we do allow that. One thing to call out is on the downside. So let's say you paid for your million dollar insurance policy, and you've paid for it. Right? So you did your part of the bargain. You paid for it. And then the Bitcoin drops in value. The way property insurance works, so this would be true on your, you know, your auto policy, is, generally, it's paying out on the fair market value, and that is true here, except we did get Lloyds to, give us one concession, I think, as Bitcoiners.
So we we made a big point of explaining to them, like, actually, it's so volatile. There's actually a decent chance we will find customers in that situation. They paid for a million dollar policy, but by the time they have a loss, you know, when that wrench attack happens, the Bitcoin was only worth $600. We don't want them to feel more or less, like, ripped off. Right? Like, we want them to get a a good value for what they paid for. And so in that circumstance, if the value has dropped, they agreed to waive the deductible. And so so, act actually, if you're going to have a loss, it's better to do it when the price is down because you could take your insurance payout. And if you, you know, chose to, you can take it immediately to the exchange, and you can make yourself whole or close to whole. There's a little time risk. Right? But, it should come through quickly and and make yourself whole in Bitcoin terms without that haircut of a deductible.
So I think that was kind of the first half of it. You know, like, what are we actually insuring and and your exact amount? So you the answer is you get the amount of insurance you pay for, and you can adjust it over time based on the value of Revolt and based on how much you want to pay for and how much makes you feel safe. So then the other half of your question, an an important one, and, honestly, one that more people should ask and other, a lot of people, I think, take for granted is just, like, how do we know you can actually pay, right, in the case of a loss?
You're a start up. You're a small company. Like, how do we know? And so here, again, I'm gonna do a little education because it it'll both answer the question, but I think it's interesting. You can learn how, you know, the industry works a little bit. So one, it's important to know that, you know, we are a small company. We are a start up. The insurance policies, though, are 100% financially backed by Lloyd's of London. Okay? So the ability to pay is Lloyd's of London and Lloyd's of London only. So they have hundreds of billions, if not trillions, I don't actually know, on their balance balance sheet, but they're a massive organization, and we are just a a mere a mere drop in the ocean, to them. So in terms of just ability to pay, just completely and on issue and on your insurance contract, they are the ones that hold responsibility.
So high level, you know, that, just certainly the balance sheet is there, and it has nothing to do with Anchor Watch's balance sheet. Just nothing at all. The insurance is backed by Lloyds of London, period. And then just the other question, again, just more more a little bit of education on insurance. The question was, you know, if everybody had a loss at the same time, could you afford to cover it? And and the question is a is a bit misformed, because the whole idea of insurance is that it is protecting you from, like, random events or from, events that are not what what we would call, like, catastrophic wipeouts or or, you know, massive catastrophic events that affect everybody. And that's why on your homeowners policy, your auto policy, it it excludes nuclear events.
Right? It excludes government seizure. It excludes the things that would cause everybody to have a loss at the same time. And and there's actually a good reason for that. It's not like a money grubby and, protective reason. It's that regulators say that the the word insurance is not that's not a nothing word. Insurance is a regulated service being sold to customers, and, you cannot promise to cover somebody that you could not back up. So, like, if you're, let's say, a midsize insurer and, a nuclear event happened and everybody in LA, you know, died at the same time, it it or, like, lost their home at the same time, not just like a neighborhood, like a wildfire, but, like, everybody. Right?
The insurance company will go bankrupt. Right? They cannot they cannot handle that widespread situation. And therefore, regulators say, okay. If you could not reasonably cover that with your reserves, then you can't cover it. You can't promise to, so you must exclude it. Right? And so we do we exclude the same things. We exclude all the standard exclusions, so nuclear events, government seizure, because, again, the government could seize it from everybody at the same time. And if that happened, like, it would be too widespread. Right? That Lloyd's is saying we're not willing to take that on and and write everybody a $2,000,000,000,000 check, to to cover all of Bitcoin being seized at the same time. Right?
And so the things that are unique to Bitcoin that we exclude, for example, would would exclude, like, for example, Bitcoin's cryptography breaking. Right? So that is specifically excluded in the policy. If Bitcoin breaks, it's just excluded. We can't cover it. Everybody literally every single customer at the same time. And it's not that Lloyds would go bankrupt. They they have enough. It's just they're saying upfront. Look. If this if this one thing could wipe out the entire clientele in the same time, then it's not a coverable event by by tradition, and we won't cover it. But, again, on any insurance policy, especially ours or anybody else who comes on, you know, with similar new products, you've gotta read the policy. You've got to if if you if you want to actually, like, make sure it's a good product that fits for you, like, read the cover the covered, situations. Here's what it covers. And then right below that, right next to it, it should say, here's what it excludes.
And, again, like, if it's if you're working with somebody good and honest and transparent, and it's regulated so that so they should be very transparent, like, where we have to be, you know, they can they can answer questions. You can be like, well, why do you exclude that? Like, why would you exclude that? And you can explain. Like, another example is hacking. So our policy does not cover hacking. This is a cold storage policy, and, you know, it is covering the the infer the risks that are actually possible to cold storage. If you're doing cold storage correctly, actually, hacking is not a risk. Bitcoin has never been hacked.
And so why do we exclude it then? We exclude it because hacking is considered cyber coverage. Right? So you've heard of cyber policies, cyber insurance policies. The issue with cyber is that hacks are frequent. Right? You hear about hacks in the news from every industry across the board, including crypto. They happen all the time. Right? And when they do, sometimes they're massive. Vivek just had their hack. Right? Sometimes these are multibillion dollar things. And so it's like AnchorWatch, we have the opportunity. Like, what what do we want to make sure is covered? What what do we not? And if we had put hacking insurance in here, it bumps the insurance product into cyber cover. And instead of being able to offer it to you at, you know, a little over half a point, of cost, it's going to be points.
Right? So take your take your vault value and multiply it times 2% for your annual cost. And we just we said, look. We don't need to cover it because this product, like, hacking is not actual risk. So we're we're trying to cover the real risks that can happen to this particular vault and then sell it for as affordably as we can. And, you know, so then down the road, Anchor Watch will have many policies. So currently, we have this cold storage policy. We'll have a an insured collaborative custody policy. We'll have insured multi institutional custody policy.
We'll have an insured hot wallet. Right? That is cyber. Right? And, yes, maybe it's more expensive because it has cyber risks. But, you know, maybe instead of being willing to do that up to a hundred million like Lloyds is willing to do on our, cold storage product, you know, maybe they're they'll be willing to jump in for a much lower amount for a spending wallet. Right? They'll they'll be like, okay. We'd be willing to write insurance for $50,000 per wallet. And and we could think about it and be like, yeah. I think that would actually be very helpful for a lot of people. Like, they're they're putting 5,000 or 8,000 in a phone wallet or a spending wallet, and, you know, they want they wanna, retain access. They don't wanna put in cold storage, but they are fearful of hacking and other risks specific to hot wallets.
And so in the future, we will just continue to add what we hope will be, you know, really high quality products that meet different people's needs. So some people are like, this is great, but, actually, we're a hedge fund, and we actually don't wanna hold keys at all. That sounds very intimidating. But we also don't wanna use a custodian. And we're like, cool. So we'll have insured multi institutional, and that kinda splits the difference. Or it could be, you know, somebody maybe that's in the room with you that's like, I would never give up my keys. I only want to participate if I can hold keys. And we're like, cool. Then our existing flagship product, is the one for you. So that's that's the vision for Anchor Watch and how we intend to keep growing, keep offering, kinda new insured products that just keep everybody safer kind of for all the different areas of their life, and then also provide those insurance products through other companies who want to start adding. Now that now that we exist, we're available, I think it opens the doors for other companies to be like, look. I we want to just add an insurance layer onto our own product, and, you know, we're happy to do that for them too.
I love that you're able to, you know, think to the future and be flexible and not just have this one, okay, it's point 55% for this thing. So, I mean, obviously, that's how businesses get developed. It's super good. I think of you, like, my mind as you were just talking, I was imagining that, you know, the meme where the guy is, like, protecting the person sleeping in bed, and they're taking the bullets or the daggers in the back. I'm like, that's Anchor Watch. Yay. Go, Becca. You know, it's funny. You know, when we jumped in, it it wasn't totally obvious to me, how much of a protective company we are.
And with all this increase in rent attacks and everything that's been happening over the last six months, you know, it's been really, really evident that that's very much on people's mind. We happened to launch at a very good time, you know, in terms of just, unfortunately, all these things are happening. And and then the other thing is is that inheritance feature. You know, it's the vault, again, it it was on purpose because we spent so long constructing that vault. Right? So so many times first internally that we're like, wait. What if, you know, a tornado happens at the same time as a wrench attack? Right? Then then what would happen? And we're like, oh, man. We better add another time lock. Right? So we started internally kinda figuring out, oh, wait. What if the customer dies?
Like, how are we go right? And so we we kept, you know, manipulating it and getting it to the point, and then we spent another year while we were still working with Lloyds to get set up, you know, taking that out to security experts, to k and r experts, you know, to people knowledgeable in the space, to people who think about vault construction. And we spent another year, like, poking holes in it. And, pretty quickly early on, we got to the point that nobody can come up with a what if situation. And that's why when I I feel confident, I say, look. We can we can protect you either through the tech and our terms of service or through the insurance contract with Lloyd's of London for for just about other scenario, every scenario except government seizure. And and so that's that's why I'm just I'm always sure to just be super transparent about that because, you know, there's pretty much everything else we're like, yep.
And we'll and we'll save the day with the recovery layer. Or, yep, we'll save the day with your insurance policy. It will it will compensate you if that happens. So it it that's that was a fun journey. Right? Like, it it's it's a fun aspect of the job, to kinda do that game theory. But once we actually launched and I've got customers calling me and we're getting on Zooms and they're telling me about their situation, you know, it just became much more real, like, that people are really depending on Anchor Watch to protect them, to protect the families, and to make sure that if something happens, you know, they're not wrecked, which is gratifying. That's fun. It's gotta be gratifying. I and you said you're a mom, so I know what it feels like to you know, our number one job as moms is to make sure our kids are safe. Oh, yeah. You know? And and there's nothing like little mama mama bear vibe in the product for sure. Exactly. So I love hearing that from you. And, you know, the lady any more questions from the ladies here? Are we good? Yeah. And, thank you so much, Becca. Like, you're such an inspiration. And, obviously, you know, Natalie Brunell inspired us all to, like, do these women Bitcoin events. You know? So, god, you know, thanks, Nat. And, we love you so much. I was just, I just recorded with Natalie for the first time. Good. So I'm not sure when it's coming out. Yeah.
And and, yeah, she she's lovely, and I think she does an amazing job kinda on behalf of on behalf of the industry and talking to TradFi and, having that traditional news source, on behalf of She's so good, and I'm kinda like, okay. So good at what she does. Yeah. So I'm like, nobody's ever invited me on Fox News, but, like, she's so great to go be I know. And she's, you know, she's so good. Every time she goes on, she absolutely does us, does us well. So, yeah, it was a real pleasure recording with her. It was it was fun and and easy, and, so it'll come out in the next week or two, I think. Good. Yeah. Yeah. Wanna reach out.
Yeah. If we wanna reach out to you, Becca, how should we find you? I've got you on follow anchor watch on x at anchor watch and then also follow That's great. Becca Molly on x. Yeah. Yeah. And, if you so the probably the best way if you wanna get in touch with me directly is just email or, you know, x DMs are fine too. DMs are open. But [email protected], would be to reach out to me. If, you're more comfortable just hopping in with our our sales team, you could email [email protected]. And, generally, the process, if you're interested, would be you would hop on a call with me or the team.
We could answer any last questions you have, you know, just make you feel comfortable. And in about, like, seven minutes or so, I can run through some of the security questions and some of the options that you have on your vault. And once we run through those questions, I can give you an accurate quote. So, again, the minimum we charge is about 55 basis points or point 55%. Almost everybody is choosing high security. So almost everybody is ending up somewhere in the lower end of the range. So I would say, realistically, I would say point five five to point seven is the most common range based on what we're seeing people choose, and more than half of them being at the lower end of that. So it's a estimate your cost. Just you could assume it's in that range. But on the call, we would go through that.
And if you wanted to move forward, if you felt comfortable and you were good with the rate, you would fill out the application. Super basic insurance application takes fifteen minutes or so. You fill that out. We're gonna send you a welcome kit that includes the signing devices, brand new. So we would then do finish up doing kind of a personalized onboarding session, with the team, walk you through Trident, make sure you feel comfortable with it, that you're familiar with the dashboard, where your insurance information is, where your wallet is. It is an amazing UX. It's beautiful. Like, I it's the best wallet in Bitcoin. Swear to god. Like, it really is. It it's the UX is solid.
Very solid. So you would love that. We do a test transaction. Make sure you're comfortable both receiving, and sending. And if, you'll we'll wrap up. You'll have an insured but empty vault. And once you have your policy in hand and and that insurance policy is bound, then you move your Bitcoin into the vault at that point. Awesome. Thanks, Becca. Woo hoo. Yay. Thanks for having me, and thanks for thanks for the ladies there that that came together in person. So. Yeah. Totally. I know. This is like a fun thing because we only have, you know, a a few women on planet Earth who are Bitcoiners, and it's like I say there's like 19 of us. Yeah. Yeah. I know. Yeah. We're safe. Yeah. I know. And it's just like, okay. Let's do, like, a hybrid in person and virtual thing so that we can, like, get more people together. So thanks so much for taking time, and, we're excited. And I hope we can get you some business and get people, you know, self custody in a very safe and insured way. And, are you gonna be in Vegas?
I will be in Vegas. Yeah. Yeah, dude. Alright. I'll see you there for sure. Alright. Yeah. I'll see you there. Yeah. We've got a bunch of Denver Space Girls here, so we'll be there. Alright. We'll see you as a We'll do a meetup for sure. Alright. Sounds good. Alright. Aloha. Thanks so much, Becca. And we'll talk to you soon, everybody. Thanks for tuning in and, yay. Make sure you follow Becca.
Hey, aloha, love tribe. Welcome to the second Tuesday of the month. The women in Bitcoin meetup here at the Denver space. Yay, Denver space. We've got ladies here in the house. We've got people tuning in from around the world, virtually. And I have somebody here, Becca Amalie, who's a cofounder of AnchorWatch, who's gonna talk to us today about why it's important to have, Bitcoin insurance on your self custody and what she does with her company, AnchorWatch. Welcome, Becca. Thank you. Appreciate appreciate being here. Thanks. Yeah. Totally. So let's, like, hear about you. Let's hear how you got involved with, you know, how did AnchorWatch start AnchorWatch start for you and Yeah. You know, what's going on and what what's what's going on in your world, my friend? Yeah. Yeah. So, I mean, I, everything in my world kinda changed very quickly when I got Orangefield. So I was already trading Bitcoin, since 2019, without really understanding when I was trading.
In late twenty twenty and early twenty twenty one, I was in the large group of people, I think, who were orange filled on Clubhouse. So I I really got my knowledge there in this very intensive, you know, six or twelve month long period that all the experts were there. Everybody was hanging out. It was the middle of COVID. People were starved for, human interaction, I think. And there was just this wonderful little period where everybody was there taking all their time to educate others. So I got orange filled. I started working in the industry as kind of a side hustle. I was working for an angel investor, Brad Mills, who, is pretty well known on Twitter and and known well in the startup space because he, is very, very supportive of early stage companies. So I was starting to get a little exposure there, and then the idea for Anchor Watch was born actually there on Clubhouse, and I jumped in. My cofounder, who's Anchor Watch's CEO, Rob Hamilton Oh, wow.
Yep. You he is he's both technical, but, you know, he was also an econ major and a math major and, is a data scientist as well as the Bitcoin expertise. So, he initially, was chatting with some guys over the idea for Anchor Watch, which and the idea was simply, self custody insurance. If you're gonna hold your Bitcoin in self custody, it should be insured. There's a lot of risks associated with that. Security practices have developed, in the space kind of because there wasn't insurance. Right? Because, you know, it's all about self responsibility and taking accountability for for yourself, and this is in part the ethos of Bitcoin. And at the same time, this is people's nest egg. Right? Like, this this is your savings. This is your retirement plan. This is your inheritance plan, and taking into self custody just inherently, has some risks that you need to consider.
So that's how the idea was born. That just you should be able to hold your own Bitcoin, hold your private keys, and have it insured. And so it's developed from there, into what we are today, but I can I can pause there if you'd like? Well, so I'm just curious, Becca. I mean, because obviously we've got, like, you know, the whole, cypherpunk ethos of, like, oh, radical self custody and bury everything in the ground and don't let anybody know stuff. But then there's, you know, we were just all the ladies and I were, you know, having some, there's peony wine. Yay. Thanks, Ben, from peony wine, who's our sponsor. And, there you go, Ben.
But we were talking about kind of the spectrum of how people approach self custody. Right? And so there's, you know, obviously, single sig, there's multisig. Now you've got this insurance, product that's really powerful. And I think there's a lot of people out there who are, intimidated to do self custody. And a lot of people are intimidated to just, like, move even a hundred dollars of sats off of an exchange into a cold wallet, you know? And so, how do you help people on this on the spectrum as it were? Little teary eyed.
Also on the nose. Right? Like, how do you support them in their journey and understanding, like, yeah, if you've got whatever, a thousand bucks of Bitcoin, go ahead and stick it on your phone. But if you're starting to look at, like, I don't wanna lose this. I want my kids to have this, or I need this for, like, you know, some home repairs. Like, how are you supporting your clients on that journey so that they feel like their hands are held? Yeah. So here, let me let let me answer in two ways. First, quickly, let me refer to what AnchorWatch, supports, I guess, in terms of our business model.
But then I think there's there's answers beyond that to your broader question about custody options and that spectrum and how to support people at different stages. So AnchorWatch, specifically, we've built a custody platform. So we're it's not somebody else's software, that we're using. Like, we have built, a piece of software. It's called Trident Vault, and it allows you to do, self custody in a new way using this tech called MoneyScript, which we we can go in if you'd like to. But it it lets you do self custody in a more advanced way that hasn't been done before. And, additionally, when you use our custody platform, the pricing and what we charge for being our customer includes up to one to one insurance. So so far in the space, when you were looking at your options, whether you were looking at self custody, just like even from single sig on one end to, like, handing it all the way over to a full custodian who you're giving them their keys, you're letting them sit there, exchange as well. It's the same thing where they have they have your Bitcoin and you have an IOU.
Anywhere in that entire spectrum, there wasn't really an insurance layer. There just there wasn't insurance, and there's risks in every different model. So every model has trade offs. Right? Like, self custody has risks of theft, wrench attack, you know, risks of physical events, your house burning down, you know, just human error, making a mistake, forgetting where it is, dying, your family member not having kind of access to it, or or a good understanding of the back backup plan. So those are all risks on the self custody side. And then, like, at the other end, there's full custodians, and so they're taking the keys. On the on the plus side, they have, you know, corporate level compliance and governance and security parameters and structures and resiliency. And so they they do all this stuff at an institutional level.
That actually does create an immense amount of security. But, you know, as we've seen in the industry, you also have risks of bad actors, right, of people who maybe are not, like, pure bad actors, but companies who've gotten way over their skis financially and ended up in trading that just, like, fell apart. Right? So you have a lot of ways to lose your Bitcoin completely if you're on the full custodian side as well. And then all these different business models are in the middle, like collaborative custodians, right, who are using traditional multisig.
So it is self custody, and they're holding a backup key. Right? So there there is this huge spectrum. And to your to your question about, like, at different amounts, nothing makes you more comfortable than just trying. Right? So, like, I would say, you know, if you're nervous about doing a thousand dollars, don't do a thousand dollars. Like, do do something that you would literally just shrug off. Start with $20. Right? And just play around with it. You know, send it to to, from, like, when opportunities come up to to actually use it. Right? If if there's some service or a swag shop or something that you're trying to use online and they have a pay in Bitcoin pay in fiat option, choose the choose the pay in Bitcoin option and and go take your $20 and actually try to use it. So just build some comfort level there.
And I think all of them, as I said, have trade offs. But Anchor Watch came in with this idea that we were going to kind of counteract those trade offs as much as we could. And so we're counting counteracting. So we're in kind of the middle ground, right, between this pure pure self custody and handing your keys over to a custodian. So the Anchor Watch model is one where you hold keys, so you do have your own private keys. AnchorWatch also has our private keys, and we're both required signers. So it's different from collaborative custody where it's like you have your keys, they have a backup key, and you only really need them if you if something has happened. Right? Something bad has happened because, ultimately, you do have your two keys, and you could sign, without them. So it's self custody. Right? And so with AnchorWatch, it's different. We're saying, okay. You have keys. You must sign. AnchorWatch has keys. We must sign.
So that way, we're protecting you from a variety of different events, like losing your wallets, having them damaged, having them, stolen. Right? So if somebody steals your keys, but Anchor Watch has not signed, the Bitcoin is not moving. But then you have to you start getting into kind of that scenario, and you're like, okay. But then, you know, what happens if something else goes wrong? Or like, okay. So if my keys get stolen, I get it that Anchor watch, can kinda protect me because they're a required signer, but can't we not move the Bitcoin because my keys were stolen and you're a required signer? And that's where, this tech, mini script comes in, and it really allows us to start, utilizing Bitcoin security to your benefit using time locks.
And if you want I don't know if you have, do do I have the ability to share a screen? Would I be able to show you? Yeah? Awesome. So I can't I couldn't hear you right there, but I did figure out how to do it. I read it? There you go. I wanna do So what what I'm showing on screen here actually is Anchor Watches custody model. So, it's a lot on screen, but the tech is actually very simple. So what the tech is doing is taking, kind of traditional multisig. So most of you, I think, are probably familiar with multisig custody, self custody where, for example, it's a two of three. And so what you see here is when you sign up as a customer and you start using AnchorWatch for custody, you have your own two of three multisig wallet. So you have that, but also AnchorWatch has our own, and they're both required.
And so, ultimately, that is what the Bitcoin smart contract is checking. It's saying, look. Did this section sign? Did the two of three sign? Yes. And did Anchor Watch sign? If the answer to both of those is yes, then you can move the Bitcoin. And then with MiniScript, we can use time locks. So the way that we use time locks is we say, alright. And then after additional periods of time pass, the Bitcoin smart contract is actually checking, has this amount of time passed, six months, twelve months, whatever it may be? And if so, then there are other ways to protect the Bitcoin, to move the Bitcoin.
And so halfway through your insurance policy, they're one year policies, then we have a contingency for the customer losing access to two of their keys, but they still have one. So it would be the customer key plus the anchor watch key set. And then I like to skip layer three because it makes more sense in the context of layer four. If you'll see, we have this dotted line here. That's at the end of your insurance policy. So what would happen is if everything goes fine at this point, like, you know, there are no emergencies. Nobody has a a loss event. Nobody passes away. You know, just life is going on as usual. We come to the end of the insurance policy. It's time to renew for the next year. The customer and the Anchor Watch would actually come together and sign a transaction, and we kind of use this as a key health check annually.
But when we do that, it it effectively restarts the clock, and it would put you right back at the top of layer one. And so if everything is going fine, we're just gonna loop through these every single year. So it's like, you know, full protection, and then right at the end, we have this recovery layer. And I like to call that up first because one one more thing to point out is after the insurance policy ends. So if you choose not to be a customer anymore, if AnchorWatch disappears, if we go bankrupt, if anything like that happens, using time locks, as long as you still have those hardware wallets, as long as you still have your signing devices and the vault, information, you would still be able to control your Bitcoin. So even without AnchorWatch, again, once your insurance policy has ended and we don't have liability for you, it is just pure and simple, boring old self custody.
And so right before that, right before your insurance policy ends, we have this recovery layer. And I was setting this up because the recovery layer is actually then how we get to the insurance, the inheritance and the benefits there and why this vault actually it protects you from so many different things. Like, it protects you from human error, from making mistakes. It actually protects you from AnchorWatch and us being a sole custodian. It protects you from all sorts of thefts, including wrench attacks, things like that. And then the recovery layer allows you to be protected even if you pass away. So the recovery layer is one right before the insurance policy ends. You're still insured, and it would be one where, let's say, you pass away midyear, Anchor Watch and a another company, an additional company, we've selected. We use a company called CoinCorner. They're a Bitcoin only exchange out of The UK, out of the Isle Of Man. They've been in business for, I think, more than ten years, been holding customer funds, customer Bitcoin that whole time, never had a scandal or a loss or anything like that. So very responsible partners.
They have their own keys. Those keys are not your backup keys, and they're not our backup keys. They are their own keys that are preprogrammed into the vault, you know, so this is all verifiable on chain. And they, in combination with Anchor Watch, could come together and move the Bitcoin to a new location, to a safe location. So if you pass away, your beneficiary, either they would get in contact with us and say, hey. You know? My mom, my sister, my friend, whomever, passed away, and, you know, I'm the beneficiary in the policy. What do we do next? Or we would be trying to get in touch with, you know, the customer to renew the policy.
They would not be responsive. And, eventually, we would actually reach out to the beneficiary and say, hey. You know, we're looking for your wife. We're looking for your mom. Can you help us get in touch? And, ultimately, we'll find out that way, and we'd be able to say, okay. Good good to know. We would do our verification, of their identity, of death certificate, of that whole process. And and once we were, you know, comfortable that the situation was as it appeared, then Anchor Watch along with CoinCorner can move the Bitcoin to the beneficiary's preferred location. So if they want to keep holding Bitcoin, if they want to be our customer, we'll set them up with a new vault, we'll educate them, we'll we'll teach them what they know and take good care of them. If they wanted to do something else, if they need to liquidate the Bitcoin, then, of course, we would we would, help them and support them get the Bitcoin where where it needs to go to accomplish what they were trying to do.
But the big difference here, and I think it's worth calling out, the difference between kind of unassisted self custody, or even collaborative custody is the issue with all of all of self custody models is that you have to leave that treasure map for your family member. Right? So you have to start writing down in your, file cabinet, like, you know, teasers. You know, here, you know, if you go outside, under the tree, dig down six feet, you'll find where I buried the seed plate, but you can't actually say that on the in the file cabinet, right, because if somebody gets into your file cabinet, now they know where it is. So people get into these actually very stressful, you know, assembling of a treasure map and hope that their family member keeps track of it and remembers what half written down instructions mean or when the instructions say, hey. Reach out to this, you know, Bitcoiner who is trustworthy, and he'll help you through it, but that Bitcoiner, you know, has also passed away or just is not responsive.
So it's things like that that are actually very, very scary, and I I can speak for that personally too. When, you know, when I was using, like, before using our own platform and just doing pure self custody, I did the same thing. Right? Like, I told my parents and my sister and my grown son, you know, the treasure map information. And I was like, okay. So here's the thing. Like, all you need to do is, like, this one go to the one place, and, like, the map will will reveal itself to you. So all you have to do. Okay? And, like, my parents are like, got it. And my sister's like, got it. My son's like, got it. And I don't know, maybe four months later, six months later. I not that long. I I was having dinner with the whole family, and I was like, hey. By the way, does everybody remember the spot, the starting location?
And two of the three households, two of the three had no idea. They had no idea. They had one piece of information. Right? And and, like, my son was the only one who, even with me, like, prompting, could figure out, like, where it was and and remember. So it's very, very concerning, and so we built this, as a very, very lock tight, I would say, way to ensure that beneficiaries get the Bitcoin. It doesn't rely on that. And maybe the last thing I'll add is the insurance itself and how the insurance plays into this whole thing. So the insurance that we offer is backed by Lloyd's of London. And so Lloyd's of London is the the large, not the largest, but the oldest and, honestly, most trusted insurance provider in the world. So, a plus rated, pretty much the best of the best.
And the policy itself, when you get an Anchor Watch policy, you are getting a Lloyd's of London policy. We're what's called Lloyd's of London cover holders, and when we write a policy, it's on their documentation. It's on their authority. And it covers really a loss of Bitcoin to for just about kind of anything that that would give you a permanent loss of Bitcoin. And so I do like to call out that one of the things we do specifically cover, is if, AnchorWatch commits fraud. Because we get questions like, okay. The recovery layer makes a lot of sense for inheritance. Right? Like, I can see why you have this layer or AnchorWatch and this other company can you know, that makes sense. But what if what if Anchor Watch misuses layer three and this other company and the two companies collude together, and steal the Bitcoin? And I can tell you all the reasons why that shouldn't happen. Right? Like, it would destroy both our companies and we you know?
But it is also specifically protected by the insurance. If Anchor Watch participates in fraud or collusion that causes the customer to lose their Bitcoin, it is a covered loss. Okay? So, so we the tech itself and just Bitcoin being this highly secure, you know, invention. Right? I would say the tech is protecting you from a lot. Right? Just this construction of the vault and the way we're using time locks. We can protect you without the insurance in a lot of ways, but there's some ways, like Anchor Watch being a bad actor, that actually, like, the tech can't truly protect you and then the insurance does. And the other one is a really scary wrench attack. Right?
So wrench attacks are on the rise, they're not happening to ultra wealthy. Somebody was killed about ten days ago for $58,000 worth of Bitcoin, worth of crypto. Most of the public ones are under a million dollars. So, you know, that's that is a real concern, and so we cover that as well, if that if that were to happen. But I know that's a lot, but, yeah, I mean, we we go pretty deep on the custody side. So It's amazing. And, again, I think you guys I mean, is there any do you even have any competitors? It doesn't I don't see anybody in the market doing what you guys are doing with insurance. No. No. I would say you have to look at it two angles. Like, from custody providers, they're certainly competitors. Right? Because you can only put your Bitcoin somewhere.
Right? So But but I haven't seen any of the custody providers providing any insurance. It's just kinda like, well, good luck, motherfucker. Exactly. Exactly. Exactly. So, you know, they can build their reputation, but at the end of the day, if something went wrong, especially with companies that are not massive publicly traded companies with huge balance sheets that even if if they're good actors, right, and something goes very wrong, they just don't have the balance sheet to make you whole. And so, yeah, insurance plays a very, very important role. And, no, there there is no other way for a retail customer, for an individual, to get an insurance on their Bitcoin. We're the only way.
So it it's definitely a first in that manner. There there are certainly some players in the space, providing different types of insurance, maybe to custodians. But even there, the custodians, the large custodians, it's a drop in the bucket. Like, they've got a couple of hundred million dollars with worth of insurance, which is, you know, a nice slug of insurance, but they have billions or hundreds of billions in custody. Right? So if they have some sort of catastrophic, loss, if, internal bad actors, if employees, infiltrate their own systems to do some sort of major heist, that's gonna overwhelm that couple of hundred million of insurance, and you'll be effectively on totally on unprotected and uninsured.
So, yeah, it really is, first and kind of only way for individuals to get custody insurance, and we can serve up to a hundred million dollars. Right? So, you know, we can definitely take care of whales. On the pleb side, on the other side, the minimum policy size that we're allowed to write is $250,000. So it's not quite, I would say, it's not for your spending money. It's for people I would say you could consider it and decide if it's a good value for you, probably if you're a whole coiner because the cost annually of fully insured $250,000 policy, which, again, is the smallest I'm allowed to write, for most customers depending on their specific underwriting and some selections, you get to make some selections on your vaults in terms of security.
Most customers, would be paying somewhere between 1,100 and, like, $1,500 a year. For fully insured custody, use of the platform, the signatures, all the ops, any help you need. It's a very personal business, so it's a personal relationship, so lots of service. So at that price, you know, even if the percentage would be a little bit higher because that would be, you know, just you'd be paying, like, the equivalent of 1% if you have a hundred thousand dollars worth of Bitcoin and you're paying 1,100 a year or so. But in in terms of fiat out of your pocket for the amount of protection you're getting, you know, for the inheritance for custody services, that's that's where I think it makes sense. If you have less than a whole coin, I mean, it it certainly still works. It's still a very secure thing, but, you know, probably pure self custody, is probably sufficient until you're until you or or collaborative custody with one of the providers out there, just holding that back up for you. Those might be kinda good options as you work your way told towards a whole coin.
Oh my god. That's a lot, and it's great info. And I know that you probably have to so much. No. Dude, I know. I get it. And it's like, I'm sure there's even more. I have two questions. One, like, let's say I need to get out of the country fast. Right? And shit starts hitting the fan, and I'm like, I got my I need my Bitcoin. What how and and let's say you guys are not available, and I need to, like, get my Bitcoin so that I can go, you know, do whatever I need to go do. How could that work? Like, just I wanna make sure I'm understanding the top of this, Yeah. Yeah. Yeah. Graph graph over here because it looks like to me, though, just so I can clarify, on the left side of the the top level, I need to have two of three so that we're doing it, and you guys have your two of three. So what happens if you guys are MIA?
Where's my Bitcoin, and how can I access it? Right. Okay. So I would say, first of all, this is designed as cold storage. So it's not a hot wallet if whether it's because you're expecting a geopolitical event or, the law is coming after you or, you know, you're you know you're going to be making a giant purchase in three days, then probably just this doesn't make sense because it it is purposely adding some friction. Right, because it it slows things down. It gives the opportunity for human verification of things. Make sure you're not under duress. And so in that way, you know, literally, if you've got your go bag next to you and you're planning to jump the country, it it's just frankly probably not the not the perfect product. This is a KYC product. It's an insurance contract, so I have to, you know, keep track of that.
This is a product that is going after statistical protection. What are the things that customers are truly at risk of of losing their Bitcoin, and let's make sure that we're protecting those. You know, I said that the tech is protecting you from this huge number of, you know, kind of risks or perils. The insurance plugs the holes on a couple that can't. I do call out the one the one thing that, like, this this really can't perfectly protect you against is government seizure. So if government seizure is is right in the center of your personal bingo card of risk, it's probably not the not the best. So what I have is a lot of customers, actually quite a few so far, who have just told me upfront. They're like, look.
I have a non KYC stack. This is my government resistance stack. If I'm worried about sixty one zero two, if I'm worried about seizure for any reason, I've got, you know, x percent of my stack kind of stored in a way that's really, really conducive to that scenario. And then I have my my wife must inherit this. It must be safe. I cannot be poorer than x, and that's my Anchor watch stack. Right? That's my, like, ultra safe, protect you from everything kinda more realistic, and and have that. And then maybe they have some somewhere else. In terms of just daily operations, like, if you need to spend Bitcoin, typically, we would be doing our compliance and make doing our side of the signatures within about a business day.
So that would be normal. Depending on cutoff, it might be next business day. And then we do, as a protective thing, we reserve the rights to slow it down for your protection. So if you put in a transaction request, something about it, like, it doesn't match the behavior you told us. You said you weren't gonna be spending money this year. Like, you you told us about your life because it's a personal relationship. Right? And then all of a sudden, you're trying to drain your vault. You know, let's let's maybe instead of a normal Zoom call, let's maybe get on another Zoom tomorrow, right, or the day after. Right? Are there any special, like like, duress, you know Yeah. We have those you guys can say, like, oh, I'm a if if I say, you know, muskrat or something, you know, like, that signals to you that I'm on a duress.
We do have duress protocols, for sure. And what that can allow us to do is call law enforcement. Right? So that gives us the time. Right? And so but we could do that even without you remembering to do that. Right? Like, just if you know, we've met you. Like, we've now spent, what, forty minutes on a call together, and so I'm learning your facial expressions. I'm learning how you communicate. And if that in combination with you telling me your expected spending habits and then we get on a Zoom call and you're behaving off, even if you are too nervous to do your dress word or whatever it may be, you know, we can still we can still use our judgment. And if you talk to the fraud department at banks that are serving high net worth clientele, right, so name brand banks, they're serving customers that have 5 and 10 and $20,000,000, and you talk to their fraud department, it is that human it's that human level. It's relationships.
And so, for example, if they have a situation where they think, there's fraud taking place, like, something about it, The first thing they do is they try to go get the personal banker who has met with that customer before, even if only once or twice, and trying to get them on the call as well so they can use tone of voice, that they can recall, you know, just the behavior of this customer and see if that can help. So, you know, that that element of human protection is really important. And so, you know, that is the anti speed approach. Right? This is this is a safety product, not a not a flexibility product, if that makes sense.
Yeah. It makes total sense. And and just, curiously, you know, for storytelling purposes, have you had to deal with that? Like, have you had experiences where you're like, okay. I gotta start doing this thing because I think that somebody's under duress. You don't have to say who it is if it's happened, but I'm just curious. Like As a rule, I would say we're probably not going to get into specifics ever, of our customer situations, and I think every situation will be bespoke. But I'll I'll say, given that we've we've just, recently launched, no. We're lucky that none of our customers have undergone, attacks quite yet, but we we pay really, really close attention to what's going on in the world. And they're, you know, Jameson Lomp tracks a lot of the public ones, actually, like, amazingly, like, is very, very diligent about it. And so anything that's reported publicly, you know, he's tracking, other people track as well, and they're retweeting them.
And multiple things always jump out at me. So one is the size of the, stolen funds. They're often smaller than you would expect. Right? It's just simply the Bitcoin and crypto in general are just viewed as easier to transact. Right? Like, if you can force the person, if you can scare them into handing over your private keys, it's perceived as being kinda easier to move. So, even if the amount of fiat equivalent is not enough to draw thieves to you in your normal life like, you might drive a a beautiful car and live in a beautiful home, and yet you're not a target. Right? But if you're known as having a lot of crypto or or you've shared that around, it's definitely increasing your odds right now, and that's what we're seeing in the data.
The other thing that I would call out is that, unfortunately, there are a lot of events that are not recorded in that list. Right? So and in including a lot of public ones or, I'm sorry, successful ones. And and, you know, that's just a reality of people wanting to preserve their safety. You know, if if you were a victim, and, you know, it was resolved and everybody's lives were saved, there are a lot of situations that are not going to do that person any favors by telling the media about it. Right? And so there there are actually a lot that are not well known. And so I just I think it's without ever being inflammatory.
I think it's something that people should really be thinking about. And if they're not super public about their holdings, I think they should consider staying that way. Right? And, getting getting your fulfillment from the world around you, from your family and friends, that doesn't involve, you know, talking about your your holdings and the size of your stack or anything like that. And, again, just for just being safety minded, just don't forget what I'm telling you, which is the size is not that high to make yourself a target. So low profile is best. We built a product, obviously, that we hope protects people if they ever found themselves in that situation. I just want you to get yourself out of the situation and safely. Right? Like, insurance claims happen. That's part of the business.
And so, you know, there's a lot of, like, yeah. We wanna see Anchor Watch. Like, are they gonna pay? Like, are they gonna if it if it fits the coverage in the policy, if the loss occurred because of events that is covered in the policy, absolutely. Lloyds is going to pay. Right? So nobody, what we want is it to be a high quality product that if people are in that situation, that, you know, people can just say what they need to say, get themselves out of the situation, hand over what they need to hand over, and not be doing some math in their head about, like, how hard and how much they should should lie and, to try to, you know, push the thieves in the wrong direction. Just stay safe. Just stay safe. We so the ladies and I I'm gonna get your question in two seconds. Like, so we had, one of our our our women here.
So two things. We were talking about having, like, a decoy wallet. Yep. You know, if we're having, you know, the wrench attacks and stuff like that. And then, and then I'll let you ask the questions just a sec, but we had somebody who had two friends who had two separate, hacks that were trying to get into their wallets in different ways. You know? And so, what's your thought on decoy wallets? And what would you say to folks, you know, because, again, you want to, appease the attacker so they just say, okay. Cool. I got what I think I need. I'm gonna leave you alone, whether it's Right. 505 hundred bucks, 5 thousand bucks, 50 whatever it might might be. Obviously, it's gonna be different if you're at, like, at a mansion in Mar A Lago or something versus, like, you know, my little house. You know? Like, okay. Cool. I got 500. Great. So I guess here here's the thing.
I would say from what I am learning, and seeing, you you don't just because of the level of your wealth does not automatically automatically mean that that matches the sophistication of the thieves. Right? And so I think a decoy wallet is is fine, and, you know, it's almost like cards, right, that you have to decide how big is big enough. And, like, so do you put do you load $500 on a on a decoy wallet? Do you load $5,000 on a on a decoy wallet? Honestly, whether that's gonna work or not is gonna come down to the standards of the thief. Right? Like like Do they believe you? Do they do they believe that that's, like, your staff? You and, like Yeah. Are they willing to walk away with that? Right? Yeah. They're like, hey. Well, fuck it. Right? So it's like and you can't predict that, really, because you don't know who this this future thief is. So you my opinion is, look, if it makes you feel better, you could load load up a decoy wallet with an amount of your I mean, with an amount you wanna keep on a single sig or something like that because now you've exposed that to new risks. Right? If it's a single like, so that's maybe you don't wanna throw $5 on it because if if the single sig has damaged your loss, you know, now you're at $5. I wouldn't want to be.
So I I definitely think you can, but just picture the situation, right, and how unpredictable that can be and how many different movie scenes of thief types. Right? Like, if it's some tweaker, right, who's just like, do you have crypto? Give it to me. Right? And you're like, here's $500. Take it. Take it. That that might be, like, a payday. Right? And they run away happy as can be. If it's somebody more sophisticated, they they've seen you on Bitcoin Twitter. They know you have it. You know, they, you know, maybe as a woman, you're easier to attack, and so they're they're coming for you. Right? And so maybe they're not gonna be okay with 500. You throw a decoy wallet at 500, and they're like, oh, fuck off. I know I know you have more than 500. Like, cute. Cute, but, like, uninteresting to me. Like, gun to the head. You know, give me the actual Bitcoin. Right?
And so it's it's not that I think people's attempts at security are are misplaced because it might work. Right? It might work. You know, being armed might solve a situation, right, even with sophisticated things. If they're not expecting you to pull a weapon out and then you shoot them in the face, Like, maybe it'll work. Right? And so it's not that I think any self defense is wasted or silly or things like that. It's just that it's not guaranteed. And when it comes to a wrench attack, a sophisticated wrench attack, right, as you're getting to smarter thieves, they actually can get through anything, just about anything security wise, including a company's protocols, including duress words, including that including you holding no keys at all. Right? Because I could still put a gun to your head and be like, call your custodian and tell him to send the Bitcoin, or I'm going to kill you.
You know? Not holding keys actually doesn't protect you either. And so our thesis is ultimately there's actually only one solid protection, and that's insurance to take care of you if it happens anyway. Wow. Yeah. And yet another another question. Remind me of the second. That that will the second question was it because I was thinking about the sixty one zero two and, like, you know, government taking in the stuff. So you're you already addressed that. But, like, we've got a couple of the ladies here asking some questions in the audience. So Yeah. Yeah. Can you lend against your insured Bitcoin? Can you lend against your insured Bitcoin?
Great question. Not literally today, but it's coming. So It's coming? Well, actually, I mean, is the question borrow against borrow borrowing is coming. Bar borrow against yeah. Borrow against your yeah. Oh, yeah. So for those who maybe are watching and aren't kinda familiar with with the ask here, what's what's been asked is, in the industry, people have been holding their Bitcoin for a long time. They don't wanna sell it. They believe number, you know, goes up into the right over time, and so they're not interested to sell it. But they would like some liquidity. They need some fiat in their lives. They can afford monthly payments. And so what they're trying to do is borrow take out a fiat loan, borrow money against their Bitcoin as collateral, the same way you could borrow against your home if you own own your home. And so they're trying to use the Bitcoin they already own as collateral to back a loan.
And so the question is with Anchor Watch, can you do that? Can you have your Bitcoin in the vault? And here, I can I can stop sharing that as well? So you can have your Bitcoin in the vault, and can you, at the same time, borrow against it and use this collateral? So, again, today today, the answer is no. But we're working on it, and, the idea would be probably next year. So in 2026, you would be able to. So that we'll be rolling that service in, and that way the collateral just stays there in the vault. We are already working to ensure some private loans.
So we have some customers where the customer found a bank, for example, who is willing to do a Bitcoin backed loan with them, but they organized it. And the bank said, like, okay. You know, we're willing to do this on an over collateralized loan, but, like, where is the Bitcoin collateral going to be held? You know? We're not comfortable with you holding it alone. Who's going to hold it? Is it going to be insured? And so they've pulled us in more or less as the custody provider for their loan. So, that's that's a way you could do it today. So if you were a customer, wanted to be become a customer, you've already found somebody else to do the loan with you with so you have kind of both counterparties, the borrower and the lender. You together could absolutely use Anchor Watch today, to, get that collateral insured.
And I think what we will see is that banks will be more willing to do that, for you when the collateral is insured. So, hopefully, you're getting better rates. You're you're actually able to find the banks willing to do it and then potentially lowering your rate by a point or two because they feel just a little bit safer. Like, the collateral is not going anywhere. We've agreed with both the borrower and lender how signatures would happen in the case of liquidation. You know, since we we're using this distributed keys, you know, we have actually a lot of control over, okay, who's gonna hold the keys, what would happen in a liquidation, who's gonna sign, how much time. Right?
But because this is all very, very flexible tech, we were able to use that, today, to provide insured custody for loans. I think that's such an important topic because, you know, we're seeing a lot of people doing, you know, there's a couple companies out there that are doing, you know, mortgages with Bitcoin. There's some that are doing seconds with Bitcoin. And so Yep. I think it's it's such an important opportunity. My ex husband and I had a hedge fund. I mean, he's still running it, but, it was doing seconds and, you know, short term loans, you know, hard money for for fix and flippers. And so I was like, gosh, you guys. Like, what if we what if we started helping people take seconds out, you know, and buy Bitcoin, hold the Bitcoin, and then just pay down the loans, you know, but you need to have it in escrow. You need it whatever, multisig. But I like the idea of it being insured because then you're gonna have, I think, a more, comfortable position, you know, instead of feeling like, oh, god. Like, who the heck has got the Bitcoin? And is it really gonna get paid? And am I gonna pay down this, you know, the second or whatever it is? So so this is, I think, a huge market that's burgeoning.
And you guys are the only ones that I see again, like, putting insurance on the Bitcoin. And so that makes a lot of, like, wow. I know you can't you probably have, you know, you can't disclose everything, but are you seeing more people using this as, like, a loan, like, you know, mechanism, like, with insurance to, like, do this? Seen a ton of activity in the industry in at large. So I'm seeing we're seeing all sorts of new capital come into the market, so on the lending side. Right? Yeah. So Cantor Fitzgerald, right, they made a huge announcement. Others are are coming in with with serious pools of capital. Now a lot of those are coming in with stables versus, like, I believe Unchained actually lends fiat, right, which for some people is much more active. Like, just put money in my bank, versus, like, these extra hops of of stables and maybe tax things that people need to make sure they're paying attention to. Right?
But regardless of how an individual company is choosing to turn this service on, it is happening. Right? Yeah. So all all over the industry. So I think I think what will happen is, everybody, I think, who has the tech stack to enable Bitcoin backed loans, I think, will offer it. That's this is my prediction. Like, I just think, literally, everybody, if you have a liquidity source, if you have the tech that can do this safely, you'll offer it. The way Anchor Watch is approaching it, again, is, I guess, through two lenses. One, the way our vault is constructed with the different keys and the different entities that hold keys is actually really ideal for Bitcoin backed loans. So we're we will be setting ourselves apart because the vault itself is more ideal and then the insurance itself. So we'll be insuring our old our own product, and offering insured, Bitcoin backed loans.
But then also, I can other companies who are doing it, Anchor Watch is a Lloyd's of London cover holder. So I can just sell them the insurance. Right? So they can use their own thing. They can do their own thing. They can go after their own customers, and I can still provide insurance and hopefully lower the cost of capital for everyone. And and the more I mean, transparently, the more insurance I sell, obviously, I'm I'm happy about it. But the more I can spread this around to multiple providers doing things in maybe similar but a little different way, and they serve different subcategories of customers. These guys serve commercial. These guys serve high net worth. These guys serve plebs.
The more diversity I can get, utilizing the insurance from an insurance standpoint, the lower the risk gets. Yeah. And I think about, like, the the like, with real like, with real estate exact you know, if you're looking at, like, a a second, for example. Right? You're gonna have a double collateralized loan because you're gonna have a second on the real estate, and you're gonna have Bitcoin. So to me, that lowers the risk of, you know, anything getting paid back. And so, hopefully, that could lead to a lesser, Right.
Right. Fee for that. So Yeah. You at home. Yeah. Okay. So one of our gals has a question. Mhmm. Do they pay our balance so that we know the amount that they can pay out at any moment is covered by their treasury, or is it an FDIC situation where we just hope that everybody doesn't go to the bank at once and ask Do the amount of loans they insure always is that always covered by how much they have to pay out? Is it always a one to one loan? Loan or insurance? You're talking about what we need today. So if if everyone cashed in their policy at once, are they able to pay it up? And do they do they provide or, like, are they very transparent on how much they're holding?
Got it. So we will know that at any moment in time, one or every insurance policy cover. Yes. Yes. Yes. She's got. Can you hear this okay? You're good? I I I heard that. So let me let me just clarify some things because, explaining how it works, I think, gets you the answer plus the knowledge. So let me just kind of approach it that way. So first of all, we are ensuring your individual vault. So when you sign up with us, we are creating your vault. It is your location on the blockchain. You can go to your vault's address on mempool.space, and you can be looking at your balance and checking it at any time.
So we are and then we are writing an insurance policy on that Bitcoin address, on that output descriptor, and the list of addresses that can be generated by your vault and your vault online. When you buy an insurance policy then so you have this vault with your Bitcoin in it. The value of the Bitcoin is fluctuating every day, right, with your with the price of Bitcoin. When you sign up, you choose a dollar amount, and this is for regulatory reasons right now. In The United States, we can't do Bitcoin denominated policies. So in The United States, I can't currently write you a 10 Bitcoin policy. I could write you a $1,000,000 policy or a $837,000 policy. Right? So, what that means and the way that works just in terms of the policy first, and then I'll get to your question about could we pay in, kind of a serious event.
So the way it would work, I like to use the analogy of fine art. It's just a very easy analogy because these policies work very similarly. So let's say you buy a painting. Okay? So you're an art collector. You've bought a high value painting. You had it appraised. It was appraised at a million bucks. So you took out a million dollar insurance policy that, let's say, has a 10% deductible. So like any property insurance, if you have a claim, you're taking that haircut. And so if your painting was stolen, you would get paid out the million minus 10%, and you would get a $900,000 payout on on your stolen painting. Right?
And so then what happens if halfway through the year so halfway through the year, your painting has not been stolen. Everything is fine, but your your favorite artist is, very popular, has had an upsurge of some surgeons in popularity, and that painting is now a $3,000,000 painting halfway through the year. So far, you bought a $1,000,000 painting, that's how much or insurance policy, that's what you paid for, and that's what you have. So now you have a choice that you can make. You can say, I am not comfortable being underinsured. Like, I that's I'm not in a comfortable position. I've got this expensive painting, and it's in my home. I'm still at risk. I don't wanna risk losing all that accrued value, and so I'm gonna call my insurance guy, or gal.
Right? I, now that I am one, I guess I need to account for that. But you're calling your insurance guy, and you're saying, like, hey. My painting, that I have that million dollar policy on, actually, it's had an amazing year. It's worth 3,000,000. I wanna up my insurance policy. I'd like to keep it fully insured. Can I raise my policy to 3,000,000? Insurance guy is gonna be happy about that. He's just gonna write you an invoice for a prorated okay. So here's the increase that you would owe for the next four and a half months until the year is up. And once you pay that, you have a $3,000,000 policy.
So, one, you are always getting the the amount of insurance you pay for, and then it's up to you how closely you want to track the value of your Bitcoin. Right? And so I think there's, like, a a trade off in, like, how you wanna spend your time versus always being fully insured, and then people some people choose not to, and we do allow that. So some people say, look. My family's all in on Bitcoin. We're very heavy. Like, we can't lose this. I never want my family, to be poorer than x. I would if I die, I would like to make sure that the Bitcoin is safe and sound so the family can pay off the mortgage and can do this and can do that. So you know what? I'm going to buy a $3,000,000 insurance policy even though I have $6,000,000 of insure of Bitcoin in my vault.
And that's enough for me. I don't I don't really wanna pay for more than that, and that's enough that it really reduces the risk of wipeout for my family, and so that's what I'm gonna buy. And we do allow that. One thing to call out is on the downside. So let's say you paid for your million dollar insurance policy, and you've paid for it. Right? So you did your part of the bargain. You paid for it. And then the Bitcoin drops in value. The way property insurance works, so this would be true on your, you know, your auto policy, is, generally, it's paying out on the fair market value, and that is true here, except we did get Lloyds to, give us one concession, I think, as Bitcoiners.
So we we made a big point of explaining to them, like, actually, it's so volatile. There's actually a decent chance we will find customers in that situation. They paid for a million dollar policy, but by the time they have a loss, you know, when that wrench attack happens, the Bitcoin was only worth $600. We don't want them to feel more or less, like, ripped off. Right? Like, we want them to get a a good value for what they paid for. And so in that circumstance, if the value has dropped, they agreed to waive the deductible. And so so, act actually, if you're going to have a loss, it's better to do it when the price is down because you could take your insurance payout. And if you, you know, chose to, you can take it immediately to the exchange, and you can make yourself whole or close to whole. There's a little time risk. Right? But, it should come through quickly and and make yourself whole in Bitcoin terms without that haircut of a deductible.
So I think that was kind of the first half of it. You know, like, what are we actually insuring and and your exact amount? So you the answer is you get the amount of insurance you pay for, and you can adjust it over time based on the value of Revolt and based on how much you want to pay for and how much makes you feel safe. So then the other half of your question, an an important one, and, honestly, one that more people should ask and other, a lot of people, I think, take for granted is just, like, how do we know you can actually pay, right, in the case of a loss?
You're a start up. You're a small company. Like, how do we know? And so here, again, I'm gonna do a little education because it it'll both answer the question, but I think it's interesting. You can learn how, you know, the industry works a little bit. So one, it's important to know that, you know, we are a small company. We are a start up. The insurance policies, though, are 100% financially backed by Lloyd's of London. Okay? So the ability to pay is Lloyd's of London and Lloyd's of London only. So they have hundreds of billions, if not trillions, I don't actually know, on their balance balance sheet, but they're a massive organization, and we are just a a mere a mere drop in the ocean, to them. So in terms of just ability to pay, just completely and on issue and on your insurance contract, they are the ones that hold responsibility.
So high level, you know, that, just certainly the balance sheet is there, and it has nothing to do with Anchor Watch's balance sheet. Just nothing at all. The insurance is backed by Lloyds of London, period. And then just the other question, again, just more more a little bit of education on insurance. The question was, you know, if everybody had a loss at the same time, could you afford to cover it? And and the question is a is a bit misformed, because the whole idea of insurance is that it is protecting you from, like, random events or from, events that are not what what we would call, like, catastrophic wipeouts or or, you know, massive catastrophic events that affect everybody. And that's why on your homeowners policy, your auto policy, it it excludes nuclear events.
Right? It excludes government seizure. It excludes the things that would cause everybody to have a loss at the same time. And and there's actually a good reason for that. It's not like a money grubby and, protective reason. It's that regulators say that the the word insurance is not that's not a nothing word. Insurance is a regulated service being sold to customers, and, you cannot promise to cover somebody that you could not back up. So, like, if you're, let's say, a midsize insurer and, a nuclear event happened and everybody in LA, you know, died at the same time, it it or, like, lost their home at the same time, not just like a neighborhood, like a wildfire, but, like, everybody. Right?
The insurance company will go bankrupt. Right? They cannot they cannot handle that widespread situation. And therefore, regulators say, okay. If you could not reasonably cover that with your reserves, then you can't cover it. You can't promise to, so you must exclude it. Right? And so we do we exclude the same things. We exclude all the standard exclusions, so nuclear events, government seizure, because, again, the government could seize it from everybody at the same time. And if that happened, like, it would be too widespread. Right? That Lloyd's is saying we're not willing to take that on and and write everybody a $2,000,000,000,000 check, to to cover all of Bitcoin being seized at the same time. Right?
And so the things that are unique to Bitcoin that we exclude, for example, would would exclude, like, for example, Bitcoin's cryptography breaking. Right? So that is specifically excluded in the policy. If Bitcoin breaks, it's just excluded. We can't cover it. Everybody literally every single customer at the same time. And it's not that Lloyds would go bankrupt. They they have enough. It's just they're saying upfront. Look. If this if this one thing could wipe out the entire clientele in the same time, then it's not a coverable event by by tradition, and we won't cover it. But, again, on any insurance policy, especially ours or anybody else who comes on, you know, with similar new products, you've gotta read the policy. You've got to if if you if you want to actually, like, make sure it's a good product that fits for you, like, read the cover the covered, situations. Here's what it covers. And then right below that, right next to it, it should say, here's what it excludes.
And, again, like, if it's if you're working with somebody good and honest and transparent, and it's regulated so that so they should be very transparent, like, where we have to be, you know, they can they can answer questions. You can be like, well, why do you exclude that? Like, why would you exclude that? And you can explain. Like, another example is hacking. So our policy does not cover hacking. This is a cold storage policy, and, you know, it is covering the the infer the risks that are actually possible to cold storage. If you're doing cold storage correctly, actually, hacking is not a risk. Bitcoin has never been hacked.
And so why do we exclude it then? We exclude it because hacking is considered cyber coverage. Right? So you've heard of cyber policies, cyber insurance policies. The issue with cyber is that hacks are frequent. Right? You hear about hacks in the news from every industry across the board, including crypto. They happen all the time. Right? And when they do, sometimes they're massive. Vivek just had their hack. Right? Sometimes these are multibillion dollar things. And so it's like AnchorWatch, we have the opportunity. Like, what what do we want to make sure is covered? What what do we not? And if we had put hacking insurance in here, it bumps the insurance product into cyber cover. And instead of being able to offer it to you at, you know, a little over half a point, of cost, it's going to be points.
Right? So take your take your vault value and multiply it times 2% for your annual cost. And we just we said, look. We don't need to cover it because this product, like, hacking is not actual risk. So we're we're trying to cover the real risks that can happen to this particular vault and then sell it for as affordably as we can. And, you know, so then down the road, Anchor Watch will have many policies. So currently, we have this cold storage policy. We'll have a an insured collaborative custody policy. We'll have insured multi institutional custody policy.
We'll have an insured hot wallet. Right? That is cyber. Right? And, yes, maybe it's more expensive because it has cyber risks. But, you know, maybe instead of being willing to do that up to a hundred million like Lloyds is willing to do on our, cold storage product, you know, maybe they're they'll be willing to jump in for a much lower amount for a spending wallet. Right? They'll they'll be like, okay. We'd be willing to write insurance for $50,000 per wallet. And and we could think about it and be like, yeah. I think that would actually be very helpful for a lot of people. Like, they're they're putting 5,000 or 8,000 in a phone wallet or a spending wallet, and, you know, they want they wanna, retain access. They don't wanna put in cold storage, but they are fearful of hacking and other risks specific to hot wallets.
And so in the future, we will just continue to add what we hope will be, you know, really high quality products that meet different people's needs. So some people are like, this is great, but, actually, we're a hedge fund, and we actually don't wanna hold keys at all. That sounds very intimidating. But we also don't wanna use a custodian. And we're like, cool. So we'll have insured multi institutional, and that kinda splits the difference. Or it could be, you know, somebody maybe that's in the room with you that's like, I would never give up my keys. I only want to participate if I can hold keys. And we're like, cool. Then our existing flagship product, is the one for you. So that's that's the vision for Anchor Watch and how we intend to keep growing, keep offering, kinda new insured products that just keep everybody safer kind of for all the different areas of their life, and then also provide those insurance products through other companies who want to start adding. Now that now that we exist, we're available, I think it opens the doors for other companies to be like, look. I we want to just add an insurance layer onto our own product, and, you know, we're happy to do that for them too.
I love that you're able to, you know, think to the future and be flexible and not just have this one, okay, it's point 55% for this thing. So, I mean, obviously, that's how businesses get developed. It's super good. I think of you, like, my mind as you were just talking, I was imagining that, you know, the meme where the guy is, like, protecting the person sleeping in bed, and they're taking the bullets or the daggers in the back. I'm like, that's Anchor Watch. Yay. Go, Becca. You know, it's funny. You know, when we jumped in, it it wasn't totally obvious to me, how much of a protective company we are.
And with all this increase in rent attacks and everything that's been happening over the last six months, you know, it's been really, really evident that that's very much on people's mind. We happened to launch at a very good time, you know, in terms of just, unfortunately, all these things are happening. And and then the other thing is is that inheritance feature. You know, it's the vault, again, it it was on purpose because we spent so long constructing that vault. Right? So so many times first internally that we're like, wait. What if, you know, a tornado happens at the same time as a wrench attack? Right? Then then what would happen? And we're like, oh, man. We better add another time lock. Right? So we started internally kinda figuring out, oh, wait. What if the customer dies?
Like, how are we go right? And so we we kept, you know, manipulating it and getting it to the point, and then we spent another year while we were still working with Lloyds to get set up, you know, taking that out to security experts, to k and r experts, you know, to people knowledgeable in the space, to people who think about vault construction. And we spent another year, like, poking holes in it. And, pretty quickly early on, we got to the point that nobody can come up with a what if situation. And that's why when I I feel confident, I say, look. We can we can protect you either through the tech and our terms of service or through the insurance contract with Lloyd's of London for for just about other scenario, every scenario except government seizure. And and so that's that's why I'm just I'm always sure to just be super transparent about that because, you know, there's pretty much everything else we're like, yep.
And we'll and we'll save the day with the recovery layer. Or, yep, we'll save the day with your insurance policy. It will it will compensate you if that happens. So it it that's that was a fun journey. Right? Like, it it's it's a fun aspect of the job, to kinda do that game theory. But once we actually launched and I've got customers calling me and we're getting on Zooms and they're telling me about their situation, you know, it just became much more real, like, that people are really depending on Anchor Watch to protect them, to protect the families, and to make sure that if something happens, you know, they're not wrecked, which is gratifying. That's fun. It's gotta be gratifying. I and you said you're a mom, so I know what it feels like to you know, our number one job as moms is to make sure our kids are safe. Oh, yeah. You know? And and there's nothing like little mama mama bear vibe in the product for sure. Exactly. So I love hearing that from you. And, you know, the lady any more questions from the ladies here? Are we good? Yeah. And, thank you so much, Becca. Like, you're such an inspiration. And, obviously, you know, Natalie Brunell inspired us all to, like, do these women Bitcoin events. You know? So, god, you know, thanks, Nat. And, we love you so much. I was just, I just recorded with Natalie for the first time. Good. So I'm not sure when it's coming out. Yeah.
And and, yeah, she she's lovely, and I think she does an amazing job kinda on behalf of on behalf of the industry and talking to TradFi and, having that traditional news source, on behalf of She's so good, and I'm kinda like, okay. So good at what she does. Yeah. So I'm like, nobody's ever invited me on Fox News, but, like, she's so great to go be I know. And she's, you know, she's so good. Every time she goes on, she absolutely does us, does us well. So, yeah, it was a real pleasure recording with her. It was it was fun and and easy, and, so it'll come out in the next week or two, I think. Good. Yeah. Yeah. Wanna reach out.
Yeah. If we wanna reach out to you, Becca, how should we find you? I've got you on follow anchor watch on x at anchor watch and then also follow That's great. Becca Molly on x. Yeah. Yeah. And, if you so the probably the best way if you wanna get in touch with me directly is just email or, you know, x DMs are fine too. DMs are open. But [email protected], would be to reach out to me. If, you're more comfortable just hopping in with our our sales team, you could email [email protected]. And, generally, the process, if you're interested, would be you would hop on a call with me or the team.
We could answer any last questions you have, you know, just make you feel comfortable. And in about, like, seven minutes or so, I can run through some of the security questions and some of the options that you have on your vault. And once we run through those questions, I can give you an accurate quote. So, again, the minimum we charge is about 55 basis points or point 55%. Almost everybody is choosing high security. So almost everybody is ending up somewhere in the lower end of the range. So I would say, realistically, I would say point five five to point seven is the most common range based on what we're seeing people choose, and more than half of them being at the lower end of that. So it's a estimate your cost. Just you could assume it's in that range. But on the call, we would go through that.
And if you wanted to move forward, if you felt comfortable and you were good with the rate, you would fill out the application. Super basic insurance application takes fifteen minutes or so. You fill that out. We're gonna send you a welcome kit that includes the signing devices, brand new. So we would then do finish up doing kind of a personalized onboarding session, with the team, walk you through Trident, make sure you feel comfortable with it, that you're familiar with the dashboard, where your insurance information is, where your wallet is. It is an amazing UX. It's beautiful. Like, I it's the best wallet in Bitcoin. Swear to god. Like, it really is. It it's the UX is solid.
Very solid. So you would love that. We do a test transaction. Make sure you're comfortable both receiving, and sending. And if, you'll we'll wrap up. You'll have an insured but empty vault. And once you have your policy in hand and and that insurance policy is bound, then you move your Bitcoin into the vault at that point. Awesome. Thanks, Becca. Woo hoo. Yay. Thanks for having me, and thanks for thanks for the ladies there that that came together in person. So. Yeah. Totally. I know. This is like a fun thing because we only have, you know, a a few women on planet Earth who are Bitcoiners, and it's like I say there's like 19 of us. Yeah. Yeah. I know. Yeah. We're safe. Yeah. I know. And it's just like, okay. Let's do, like, a hybrid in person and virtual thing so that we can, like, get more people together. So thanks so much for taking time, and, we're excited. And I hope we can get you some business and get people, you know, self custody in a very safe and insured way. And, are you gonna be in Vegas?
I will be in Vegas. Yeah. Yeah, dude. Alright. I'll see you there for sure. Alright. Yeah. I'll see you there. Yeah. We've got a bunch of Denver Space Girls here, so we'll be there. Alright. We'll see you as a We'll do a meetup for sure. Alright. Sounds good. Alright. Aloha. Thanks so much, Becca. And we'll talk to you soon, everybody. Thanks for tuning in and, yay. Make sure you follow Becca.
Introduction and Welcome
Meet Becca Amalie: Co-founder of AnchorWatch
The Birth of AnchorWatch and Bitcoin Insurance
Understanding Self Custody and Insurance
AnchorWatch's Custody Platform: Trident Vault
The Spectrum of Custody Options
AnchorWatch's Multi-layer Security Model
Inheritance and Beneficiary Protection
Insurance Backed by Lloyd's of London
Cold Storage vs. Hot Wallets
Duress Protocols and Security Measures
Decoy Wallets and Security Strategies
Borrowing Against Insured Bitcoin
The Future of Bitcoin-backed Loans
Understanding Insurance Policies and Coverage
Exclusions and Limitations of Insurance
AnchorWatch's Vision for the Future
Closing Remarks and Contact Information
