In a move targeting the growing security concerns in the cryptocurrency sector, fintech platform iTrustCapital has introduced the Premium Custody Account.
Known as a crypto IRA provider, the PCA launch marks iTrustCapital’s first non-IRA product and expands its services beyond retirement accounts.
A Response to Crypto Custody Security Challenges
The launch comes as crypto investors continue to face threats from cyberattacks, phishing scams, and financial mismanagement by exchanges.
High-profile hacks, such as the recent eye-watering $1.5 billion hack of Bybit, have highlighted the risks of keeping assets on centralized platforms.
At the same time, self-custody, while offering more control, presents challenges of its own, including the loss of private keys and exposure to hacking attempts.
How the Premium Custody Account Works
The TrustCapital PCA is designed to provide a safer way for investors to buy, sell, and store digital assets.
To that end, it introduces a closed-loop system that only allows funding and withdrawals in USD via a linked U.S. bank account, preventing unauthorized transfers of digital assets to external wallets – the most common way crypto assets are stolen.
This feature significantly reduces the risk of theft due to compromised credentials or phishing attacks. The downside of course is that such an account isn’t suitable for traders or investors who want to move assets on and off the platform frequently.
Supported digital assets include Bitcoin, Ethereum, Solana, XRP, Cardano, and others.
Unlike iTrustCapital’s Crypto IRA accounts, the PCA has no contribution limits and allows users to transact 24/7. There is, however, a minimum deposit of $2500 required to open an account.
Security and Transparency
iTrustCapital says its PCA offers institutional-grade custody with client assets held 1:1 off-balance sheet with third-party U.S. banks and custodians, ensuring funds are never leveraged, loaned, or commingled with company operations.
iTrust Capital does not store the assets itself, instead outsourcing that task to qualified custodian Fortis Bank – which in turn places assets with a range of crypto custody providers including Coinbase Custody, Fidelity Digital Assets, and Fireblocks,
Other key aspects of the PCA include:
Zero Monthly Fees: No ongoing account maintenance costs for personal accounts.
1% Transaction Fee: Applies to every buy and sell transaction, with additional asset pricing fees possible.
Live Customer Support: U.S.-based specialists assist with account setup and inquiries, a contrast to many platforms that rely on automated chatbots.
Conclusion
As more people enter the crypto investment space, the number of secure crypto custody services is expanding. However, in many cases – and in the case of iTrustCapital – the service offerer is not actually the custody provider. With the difficult job of custody being handled for the company by providers like Coinbase, Fidelity and Fireblocks (all good options), iTrustCapital can really only differentiate itself through things like its marketing, fees and customer service.
Its use of a ‘closed loop’ system, where deposits and withdrawals must be made in US dollars is excellent, as it ensures there is no possibility of a transfer of digital assets to wallets. However, its fee of 1% on purchases and deposits is high. For example, to deposit and withdraw $1 million from a PCA account would incur $20,000 in fees. While this may not be of major concern to a long term holder, there is also currently no interest earned or tax benefits from holding assets in a PCA, in which case, long term holders might find an actual crypto IRA product to be a better fit.
