I sold my startup and had $10 million in ETH. I didn’t want it on a Ledger in my sock drawer. I looked at institutional custodians: Anchorage Digital, Coinbase Prime, and Fireblocks. I needed to know who would actually write the check if the keys were stolen.
Key Takeaways
- Tech Provider vs. Custodian: Fireblocks is a technology provider (they give you the software to hold your own keys). Anchorage is a qualified custodian (they hold the keys for you).
- Fireblocks: You insure yourself (since you hold the keys).
- Anchorage: They insure the assets (since they hold the keys).
- “Qualified Custodian” Status: This is the legal gold standard. It means they have fiduciary duties and regulatory capital requirements (like a bank).
- Insurance Towers: Big custodians don’t have one policy; they stack multiple policies from different insurers to get to $500M or $1B coverage.
- Cold vs. Hot Limits: The vast majority of insurance applies to “Cold Storage” (offline). Hot wallet insurance is usually very low (e.g., $10M total for the whole client base).
The “Why” (The Trap)
The trap is “SaaS vs. Trust.”
If you use Fireblocks, YOU are liable if you lose the key (unless there was a software bug).
If you use Anchorage/Coinbase Prime, THEY are liable if they get hacked.
Whales often confuse the two and think using Fireblocks software comes with a bailout. It doesn’t.
The Investigation (The Institutional Tier)
I compared the “Big Three” for a $10M deposit.
Anchorage Digital
- Type: Chartered Bank (OCC).
- Insurance: “Specie” policy covering internal theft and physical damage.
- Pros: Regulatory protection is highest.
Fireblocks
- Type: Tech Provider (MPC Wallets).
- Insurance: They have a policy that covers software bugs or cyber breaches of their cloud. But if your employee gets phishing scammed and authorizes a transfer, Fireblocks insurance does not pay.
Coinbase Prime
- Type: Custodian.
- Insurance: $320M hot wallet policy (shared). Higher limits for cold storage.
Comparison Table
| Feature | Anchorage | Fireblocks | Coinbase Prime |
| Key Holder | Anchorage | You (Client) | Coinbase |
| Liability for Theft | Anchorage | You | Coinbase |
| Insurance Limit | High (Cold) | Tech E&O | High (Cold) |
| Best For | Hands-off Whales | Active Funds/Trading | Mixed Use |
Step-by-Step Action Plan
- Define Your Needs: Do you need to trade daily (Fireblocks) or sit on it for 10 years (Anchorage)?
- Request the COI: Ask for the “Certificate of Insurance.” Look for “Crime” and “Specie” coverage.
- [IMAGE: Sample Certificate of Insurance document highlighting ‘Digital Asset Specie’ limit]
- Negotiate a Dedicated Limit: If you have >$50M, ask for a “Dedicated Vault” with its own insurance policy naming you as the “Loss Payee.” This costs extra but guarantees the payout isn’t shared.
FAQ
Does Fireblocks have insurance?
Yes, but it covers their negligence, not yours.
What is MPC?
Multi-Party Computation. It splits the key into shards. It removes the “Single Point of Failure” of a private key. It is the industry standard for security in 2026.