Now available: Casa ethereum vaults, inheritance planning, and more

https://blog.keys.casa/ethereum-vaults-now-available/

Amidst all the bank failures, web3 hacks, and custodian collapses of the last year, one thing is clear: self-custody is the only security model you can truly count on. The best defense for your ether against rising custodial risk is holding your own private keys in a multi-key vault, which protects your assets against accidental key loss, theft, or device failure.

Today, we’re proud to announce that members can now secure their ether (ETH) with their Casa vault. Casa is the first and only place to manage both BTC and ETH multi-key vaults in one simple app, so you don’t have to split up your self-custodied assets between multiple providers.

Introducing Casa’s brand-new ethereum vaults

Casa vaults are designed with the principles behind multisig, a security protocol that requires authentication from multiple devices (keys) before assets can be sent to another address. With ETH, this process is performed through smart contracts.

This distributed security model prevents your ETH from being lost or stolen from one incident alone — so if you make a mistake and lose a key, or your hardware device stops working, you don’t lose all your money. Our multi-key vaults provide improved security over a single-key hardware or software wallet.

With Casa, you have multiple levels of security and convenience available all in one place. From a simple mobile wallet where you can send ETH with just your phone, to high-security vaults that require approval from multiple keys, you can personalize your security just like you would with a bank. With your personal vault, you can:

Send and receive ETH
Replace a lost or stolen key without losing assets
Create and manage a subaccount
Perform recurring health checks on your keys
Access our industry-leading member support (available 24/7 with Premium and Private Client plans)

Our vaults provide you with a secure home for your ETH and BTC, so you have peace of mind that your assets are safe.

Self-custody is the future of ownership

For most of recorded human history, we have had to rely on third parties to hold our most valuable assets. But with the invention of bitcoin, we discovered a practical way for people to use cryptography to create a self-custodial security model that is as robust as the security of any third party — without needing to trust that third party to do the right thing.

In the last year, we’ve seen some exchanges steal their customers’ money, others implode due to mismanagement of risk, and even legacy banks fail, all of which have caused people to lose access to their own money. Self-custody is the clear answer; it’s a complete disruption in personal property rights. When you hold your own keys in cold storage, you have proof of ownership, a tool that empowers individuals and communities alike.

For too long, ETH investors haven’t had a simple and secure way to hold their own keys, leading to disastrous consequences far too frequently. Casa is changing that, so you don’t have to make tradeoffs between feeling safe and actually being safe by protecting your assets yourself.

Meet your new Casa membership

Self-custody is for everyone, and there’s a Casa membership for every ETH investor. We’ve introduced new membership plans to guide you through self-custody, all of which come with the opportunity to secure BTC as well.

Your security should increase as your investment increases, and these plans allow you to develop your protection over time. Secure ETH with any of the following:

Free: A first step on the path to self-custody
Standard: Essential asset protection for individuals (3-key vault included)
Premium: Superior asset protection for individuals and families (5-key vault included)

If you or your family are securing substantial holdings, it’s prudent to consider a bespoke security plan. These investors can access complete asset protection as a Casa Private Client. This unique offering comes with legacy planning options, personal consultations, and exclusive security features for a holistic self-custody experience.

Want to learn more about our plans? Compare them here.

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Plan your legacy with ethereum inheritance

If you plan to hold your ETH for an extended period of time, it’s smart to set up some contingencies. Having a clear, documented inheritance plan is a critical step for ensuring the long-term security of your assets.

And now, we have the tools. Casa’s industry-first bitcoin inheritance offering has been expanded to include ethereum. This service, available for Casa Private Clients, allows you to designate a Recovery Custodian to receive your ETH upon your death.

Depending on your personal circumstances, you may prefer to comanage your assets here and now with someone you trust. Premium members have the option to share account access with another individual. If either partner should pass away, the Casa account will transfer to the other partner in full. These features provide Casa members with the flexibility they need to navigate the complexities of estate planning.

Taking a long-term approach is essential to practicing self-custody, and wealth transfer isn’t a matter of if — it’s a matter of when. Consider developing an ethereum inheritance plan wherever you are in your crypto journey.

Final thoughts

We’re excited to help ethereum investors take self-custody. By holding your keys, you’re ensuring that you have control over your digital wealth. Create your own ETH vault and have peace of mind that your assets are safe.

Want help with choosing the right Casa membership?

Our advisors are happy to introduce you to ethereum self-custody and help you pick the perfect security plan for your ETH. Contact us here.

Hands Off Our Self-custody

https://blockworks.co/news/private-keys-regulation

In the wake of the triple bank collapses and last year’s creeping crypto contagion (the bankruptcies of FTX, Celsius, Voyager, the list goes on), politicians on both ends of the spectrum are discussing how crypto should now be governed — and not everyone agrees on what that looks like.

Some of the calls for general oversight seem to think that being able to privately store personal assets shouldn’t be allowed in this new risky financial reality.

And while these regulatory efforts are inevitable in the face of so many financial failures, this proposed solution will not eliminate all risks. Even with the soundest rules in place, institutions fail, and bad actors will always find ways to exploit loopholes.

Instead, a powerful case should now be made for personal responsibility through self-custody.

Self-custody is cited as risky, with Senator Elizabeth Warren emphasizing the danger in how users could obscure the use of their self-held funds to cover up criminality.

This argument is not strong enough to justify eliminating the right to personal custody. In fact, self-custody will help investors regain control over their money and prevent future financial disasters from occurring.

Limitations of centralized exchanges, limitations of regulations

Storing funds in a centralized exchange or other third-party platforms exposes customers to considerable risk, including hacks, negligence and corruption. While not all centralized crypto businesses are mishandling funds, it can be difficult to know who is until it’s too late.

People are beginning to wise up to the fact that trusting anyone else with their money undermines one of the core principles that cryptocurrency was actually founded on.

A current lack of any form of regulatory protection exacerbates the problem.

With most traditional financial firms, there is some form of state-backed “safety net” to protect customer funds in the face of insolvency — like how the FDIC and the Federal Reserve stepped in to backstop the banks’ depositors and stop the bank runs after the failures of Silicon Valley Bank, Silvergate and Signature earlier this year.

In the crypto industry, there are no such guarantees. Centralized exchanges custody user funds without regulatory oversight. This means there is no one even attempting to check their custody practices and solvency — meaning consumers are largely unprotected when things go wrong.

In response to the many exchanges failing, Sen. Warren proposed one of the more far-reaching attempts at regulation, which would require private wallets to adhere to strict anti-money laundering (AML) practices.

While AML policy can be implemented at centralized financial platforms, (which doesn’t speak for its actual effectiveness at preventing money laundering), it’s impossible to apply the same rules to self-custody and DeFi platforms, which primarily exist as code that anyone can use, without asking permission.

If this legislation passes, any service that will not or can not comply could become blacklisted in the US, severely limiting the ability of the industry to evolve in this region.

An unnecessary overreaction

Misguided, overly strict policy proposals are a considerable overstep in personal rights and would be a crippling blow to the cryptocurrency industry in America. Services would be largely pushed overseas, which would have a ripple effect of offering legitimate users fewer and fewer points of access or means to personally store their assets.

Combined with honest exchanges moving to other jurisdictions, eliminating private storage solutions would not make users safer and would only encourage them to find unvetted or illicit ways to circumvent these restrictions. Consumers would be stuck between using government-sanctioned fiat, or engaging in high-risk financial behavior, neither of which is a step in the right direction.

This is especially problematic because of why regulators claim it’s necessary to start controlling self-custodied assets: The proposed legislation claims that this is necessary to deter financial crimes like money laundering.

There is some validity to the concerns, as cryptocurrency is used for money laundering (although not as much as fear mongers would have you think). However, introducing such restrictive legislation under the guise of protecting users makes little sense. Keeping people from securing their own money doesn’t protect them in instances where financial institutions themselves fail.

Perhaps most importantly, this legislative overreach into self-custody is an unnecessary step because there are already tools available that can keep control in the user’s hands while protecting against the risk of loss due to mistakes or theft. Several wallet applications and services are already available that easily walk a user through the process of generating, storing and accessing multiple keys — removing the risk that losing a single key results in losing funds. Most importantly, they allow users to control their own keys, eliminating issues with third party storage. Bills like the one being proposed by Sen. Warren, could potentially cut the public off from access to these platforms.

When events like FTX’s collapse happen, many users get wary and begin moving their funds off of centralized exchanges and into personal wallets, and they should have every right to continue to do so.

The absolute safest way to store the majority of funds will continue to be self-custody, and that simply isn’t going to change. Remember, sovereign control over a person’s own money was a major reason Bitcoin was created in the first place.

Nick Neuman is CEO at Casa Inc., a leading provider of Bitcoin and soon Ethereum self-custody storage solutions. He previously worked in finance at the Sterling Group and Lazard.

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How to set up the best wallet for ordinals and inscriptions

https://blog.keys.casa/securing-ordinals-with-casa/

Have you heard about ordinals? This emerging technique for trading bitcoin is driving a new wave of creativity and experimentation on bitcoin, and art is just the beginning.

If you’re planning on creating your inscription or perhaps bidding on an ordinal NFT, there are some important things to consider before you make the leap. Casa’s multi-key vaults are designed to help you secure digital assets including ordinals and inscriptions. Here’s a brief overview of how to get started.

What’s an ordinal?

Ever since bitcoin was created, there has been interest in storing data, such as artwork and text, on the blockchain outside of bitcoin transactions. In fact, Satoshi Nakomoto stamped a newspaper headline in the first bitcoin block in 2009.

Ordinals are a method of assigning unique identifiers to individual satoshis (sats), the smallest denomination of a bitcoin (0.00000001 BTC). Ordinals allow you to attach content to a satoshi and store it on the blockchain, which creates an inscription, a type of digital artifact or non-fungible token (NFT).

How to secure inscriptions

Security is the most important part of any collection. Art theft is real even in the digital world, and there have been numerous instances of stolen NFTs in recent years. If you are in possession of an inscription or bidding in auctions, it’s vital to have a plan for how you’ll take safe custody of your assets.

Because bitcoin’s blockchain is designed to be irreversible, inscriptions can serve as a permanent record. When you send and receive them, the transactions are also permanent, which is all the more reason to keep yours safe.

The best way to secure inscriptions and other digital assets is with multiple keys. That way, your assets are safe even if one of your devices or seed phrases is lost or stolen. Casa vaults are built with multiple keys and are noncustodial, so you have complete control over your inscriptions.

Security options for inscriptions

Purchasing collectibles can be a fast-moving, high-stakes undertaking. If you’re pressed for time, our 3-key vaults are a great way to get started so you can participate in an auction or purchase. These are available on our Gold membership, and these can be quickly set up on your own as long as you have a hardware wallet. That way, you can place secure bids knowing you have your self-custody lined up. Sign up for Gold here.

If you plan on holding your asset for an extended period of time, it’s smart to upgrade your security when you have the chance. Our Platinum membership comes with a 5-key vault, the most robust option for securing digital assets, and it’s well-suited for ordinal collections. Our 5-key vault helps you make the most of your self-custody with complete peace of mind.

Ready to set up a Casa vault for your inscriptions? Sign up today to get started. We’re available to answer all your security questions.

Manage collections with a subaccount

Ordinals are special sats. To keep them secure, you need to avoid commingling them with the rest of your bitcoin.

If you don’t keep inscriptions separate from other assets, you put yourself at risk of accidentally sending your inscriptions to someone in an unrelated transaction. Additionally, you need to be sure you’re using the correct bitcoin address when you’re transacting with an inscription. Trust us: you don’t want to pay for coffee with fine art.

Our Casa vaults can help you keep track of your inscriptions using subaccounts. Think of a subaccount as a dedicated room within your vault for your collection.

With a Platinum membership, you can create up to four subaccounts. This gives you one place to generate bitcoin addresses and secure inscriptions, so they are separate from the rest of your bitcoin.

Create and transfer inscriptions securely

Once you create a subaccount, it’s important to be meticulous with trading inscriptions and use different addresses for each inscription. This is because inscriptions are traded within unspent transaction outputs (UTXOs) which are data entries connected to an address that contain a specific amount of bitcoin available to be spent.

To keep your inscription safe, you need to keep track of its UTXO, and the Casa app can help with managing individual UTXOs. This article in our Support Center describes the ordinal transaction process and covers the best practices for managing your inscriptions. Be sure to follow the instructions before proceeding with your first transaction.

Secure ordinals with Casa

Casa takes all the guesswork of securing ordinal inscriptions, so you can focus on the fun parts of managing your collection. Get started with a Casa vault, and secure your personal collection today.