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Kingdom Trust: Comprehensive Overview

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calendar_today April 01, 2025

Kingdom Trust: Comprehensive Overview (March 13, 2025)

Role in Unchained Capital’s Multisig Custody

Third-Party Key Agent: Kingdom Trust serves as a third-party key agent in Unchained Capital’s collaborative multi-signature custody platform (Unchained forms strategic relationship with Kingdom Trust - Unchained) (Unchained forms strategic relationship with Kingdom Trust - Unchained). In Unchained’s 2-of-3 multisig model, Kingdom Trust holds one of the three private keys as an independent, qualified custodian. This arrangement is used for Unchained’s “collaborative custody” vaults and bitcoin-backed loans, enhancing security by requiring two signatures (e.g. the client’s key plus either Unchained or Kingdom Trust) to move funds (Unchained forms strategic relationship with Kingdom Trust - Unchained) (Unchained forms strategic relationship with Kingdom Trust - Unchained). By involving Kingdom Trust as an external key holder, Unchained’s clients get the benefit of a regulated custodian participating in securing their bitcoin, without any single entity having unilateral control (Unchained forms strategic relationship with Kingdom Trust - Unchained). This minimizes single points of failure while ensuring the client retains partial control of their assets. Kingdom Trust’s status as an independent South Dakota-chartered trust company (regulated by the SD Division of Banking) makes it a “qualified custodian”, meeting legal requirements for custody of client assets (Unchained forms strategic relationship with Kingdom Trust - Unchained). The partnership, announced in late 2022, was seen as strategic for expanding Unchained’s multi-institution custody offerings and providing additional assurance to clients that their collateral or vault assets are co-managed by a reputable third party (Unchained forms strategic relationship with Kingdom Trust - Unchained) (Unchained forms strategic relationship with Kingdom Trust - Unchained).

Collaborative Custody in Practice: In this setup, Kingdom Trust essentially co-custodies bitcoin with Unchained. For example, high-net-worth investors using the Onramp Bitcoin Trust product benefit from a 2-of-3 multisig where Unchained Capital and Kingdom Trust each hold a key (with Onramp coordinating) (Onramp Launches Spot Bitcoin Trust With Multi-Party Custody). Two of the three must sign to authorize any transaction, giving investors direct ownership of bitcoin in a regulated trust without the risks of sole custody or relying on a single custodian (Onramp Launches Spot Bitcoin Trust With Multi-Party Custody). This reflects a broader industry trend of multi-party custody, leveraging Bitcoin’s multisig capability to improve security and trust.

Crypto Custody Services: Institutional and Retail Offerings

Qualified Custodian Background: Kingdom Trust is an independent, regulated trust company that has been operating since 2009/2010 (chartered in Kentucky, later in South Dakota) (Unchained forms strategic relationship with Kingdom Trust - Unchained) (Kingdom Trust launches IRA supporting bitcoin ownership - Brave New Coin). It was among the first financial institutions to offer qualified custody for digital assets, entering the bitcoin custody market as early as 2016 (Unchained forms strategic relationship with Kingdom Trust - Unchained) (Kingdom Trust launches IRA supporting bitcoin ownership - Brave New Coin). As a qualified custodian under U.S. law, it can hold assets on behalf of investment advisors, retirement accounts, and institutions in compliance with the Investment Advisers Act and IRS regulations (BitGo Enters Into Agreement To Acquire Kingdom Trust | Business Wire) (Update: Bitcoin Startup BitGo Will Not Acquire $12 Billion Asset Custodian Kingdom Trust). Over a decade of operations, Kingdom Trust has amassed a large client base and asset portfolio – by 2020 it was reported to support 100,000+ retirement accounts and over $12–13 billion in assets under custody (Kingdom Trust launches IRA supporting bitcoin ownership - Brave New Coin) (Update: Bitcoin Startup BitGo Will Not Acquire $12 Billion Asset Custodian Kingdom Trust) (spanning both traditional and digital assets).

Institutional Services: Kingdom Trust provides custody solutions for institutional investors, funds, family offices, exchanges, and investment platforms (Kingdom Trust launches IRA supporting bitcoin ownership - Brave New Coin) (Best Crypto Custody Providers | Ulam Labs). It acts as a neutral, passive custodian (non-discretionary, not lending out client assets unless directed) for a wide range of asset types. In the crypto realm, institutions have used Kingdom Trust to custody assets for products and services: for example, it has been the custodian for Bitcoin IRA providers, for crypto investment funds, and for multi-signature arrangements like Unchained’s and Onramp’s offerings. It supports custody of 30+ cryptocurrencies (as of 2018) and has expanded that list over time (Kingdom Trust launches custody platform - Asset Servicing Times). Notably, Kingdom Trust has partnered with technology firms rather than building everything in-house – historically it partnered with BitGo for multi-signature wallet technology (Update: Bitcoin Startup BitGo Will Not Acquire $12 Billion Asset Custodian Kingdom Trust), and more recently with Fidelity Digital Assets for sub-custody (see Security section). Its institutional focus is underscored by a strong regulatory structure and insurance, which appeals to professional investors seeking to satisfy due diligence requirements (Unchained forms strategic relationship with Kingdom Trust - Unchained) (Kingdom Trust launches custody platform - Asset Servicing Times).

Retail and IRA Offerings: Kingdom Trust is also known for serving individual investors, particularly through self-directed IRAs and other retirement accounts. In 2020, it launched “Choice by Kingdom Trust,” a unified retirement account platform that lets users hold both traditional assets (stocks, ETFs, etc.) and alternative assets like bitcoin in one tax-advantaged account (Kingdom Trust launches IRA supporting bitcoin ownership - Brave New Coin) (Fidelity Digital Assets to Custody Bitcoin in Kingdom Trust Retirement Accounts). This platform (accessible via a mobile app) allowed individuals to open Traditional or Roth IRAs that include crypto, making it easier for retail investors to get Bitcoin exposure in retirement savings (Would love some advice for an IRA with Bitcoin exposure : r/Bitcoin). Choice gained traction for its user-friendly approach (no hefty minimums or excessive fees for basic accounts) (Would love some advice for an IRA with Bitcoin exposure : r/Bitcoin). It also differentiated itself by offering multiple custody methods: users could opt for self-custody of bitcoin within an IRA (holding their own keys via a tool integrated with Casa) or use Kingdom Trust’s custody (with coins held in cold storage via Fidelity) (Fidelity Digital Assets to Custody Bitcoin in Kingdom Trust Retirement Accounts) (7 Bitcoin and Crypto Custodians Facilitating Institutional Digital Asset Adoption). Choice was marketed as the first “unified” retirement account for legacy and digital assets (Kingdom Trust launches IRA supporting bitcoin ownership - Brave New Coin), highlighting Kingdom Trust’s innovative bent in the IRA space. (Update: In February 2024, Kingdom Trust sold the Choice platform to Bitcoin IRA (a leading crypto IRA provider) as a strategic move to focus on its core custody business (Choice Kingdom Trust Acquired by Bitcoin IRA - Imperii Partners) (Choice Kingdom Trust Acquired by Bitcoin IRA - Imperii Partners). This means Bitcoin IRA acquired the Choice app and its client base, while Kingdom Trust continues to function as a custodian behind the scenes for alternative assets, refocusing on its B2B services.)

Beyond IRAs, Kingdom Trust offers taxable custody accounts and escrow services for individuals who want a qualified custodian for crypto outside of retirement accounts (Update: Bitcoin Startup BitGo Will Not Acquire $12 Billion Asset Custodian Kingdom Trust). It can custody an unusually wide array of assets – not just crypto: clients have used it for precious metals, real estate, private equity, and other alternatives in self-directed accounts (Kingdom Trust Company Reviews (Independent)). This broad asset support (over 20,000 different assets supported, by one count) is a legacy of Kingdom Trust’s roots in alternative asset custody (Best Crypto Custody Providers | Ulam Labs). In crypto specifically, it supports major coins like Bitcoin, Ethereum, Litecoin, XRP, Zcash and many others, and has integrated services (like an in-app exchange via Kraken for IRA users to trade crypto) (Kingdom Trust launches IRA supporting bitcoin ownership - Brave New Coin). For retail customers not using Choice, Kingdom Trust’s services were traditionally accessed via custodial agreements through partners (e.g. financial advisors or IRA facilitators). The company’s ability to straddle both institutional and retail segments – from holding private keys in collaborative custody for companies, to enabling a retiree to put Bitcoin in a Roth IRA – underscores its versatile role in the crypto custody ecosystem (Best Crypto Custody Providers | Ulam Labs) (Best Crypto Custody Providers | Ulam Labs).

Security Measures, Technology, and Risk Management

Cold Storage and Key Security: Kingdom Trust emphasizes a “security-first” approach, combining time-tested cold storage methods with modern multi-signature and multi-party techniques. The vast majority of digital assets in its custody are held in offline cold storage for maximum security (Lloyd’s Jumps Into the Cryptocurrency Market, Insuring Part of Kingdom Trust’s $12 Billion Assets). Keys are stored offline in secure facilities (at one point, Kingdom Trust even leveraged an insurance broker to place coverage with Lloyd’s of London specifically for its cold storage setup (Kingdom Trust launches custody platform - Asset Servicing Times)). Cold wallets are considered safer against hacking and are a prerequisite for obtaining comprehensive insurance coverage (Lloyd’s Jumps Into the Cryptocurrency Market, Insuring Part of Kingdom Trust’s $12 Billion Assets). Kingdom Trust’s cold storage covers a range of major cryptocurrencies, and likely uses geographically distributed, access-controlled vaults to hold the private keys (industry best practices often involve redundant key shards in secure vaults). By 2018, Kingdom Trust had obtained a Lloyd’s of London insurance policy against theft or destruction of digital assets under its custody (Kingdom Trust launches custody platform - Asset Servicing Times) (Lloyd’s Jumps Into the Cryptocurrency Market, Insuring Part of Kingdom Trust’s $12 Billion Assets) – an effort that reportedly took almost a decade to achieve in the crypto space (Lloyd’s Jumps Into the Cryptocurrency Market, Insuring Part of Kingdom Trust’s $12 Billion Assets). This insurance gives clients an added layer of protection and confidence that even in an extreme event (e.g. physical breach or insider theft), there is financial recourse.

Multi-Signature & Collaborative Custody: As seen with Unchained Capital and others, Kingdom Trust is a proponent of multisig as a risk management tool. Rather than relying on a single private key controlled by one custodian, Kingdom often participates in schemes where multiple keys (held by separate entities) are required to transact. This drastically reduces the risk that a single point of failure (a compromised key or rogue actor) could result in loss of funds (What is a bitcoin key agent? - Unchained) (What is a bitcoin key agent? - Unchained). For its enterprise clients, Kingdom Trust can act as one key holder in a multisig wallet – leveraging its secure key management process alongside a client’s own keys or keys held by other partners. In practice, Kingdom Trust’s internal tech may utilize hardened appliances or HSMs for signing when it is called upon to sign its key in a multisig quorum. Even when offering straight custody (single-custodian control), Kingdom Trust likely uses multi-key sharding internally (splitting keys among multiple secure devices/personnel) to prevent any single point of compromise. Earlier in its crypto custody journey, Kingdom Trust partnered with BitGo – an industry leader in multi-signature wallet technology – to secure its wallets (Update: Bitcoin Startup BitGo Will Not Acquire $12 Billion Asset Custodian Kingdom Trust). (BitGo’s software was known for n-of-m multisig and robust policy controls, suggesting Kingdom Trust’s infrastructure was built with these features.) Kingdom Trust has since also integrated Fidelity Digital Assets as a sub-custodian, meaning that customer bitcoins can be held in Fidelity’s cold storage vaults while Kingdom Trust remains the legal custodian of record (Fidelity Digital Assets to Custody Bitcoin in Kingdom Trust Retirement Accounts) (Fidelity Digital Assets to Custody Bitcoin in Kingdom Trust Retirement Accounts). This partnership (established in 2020) effectively outsources some of the technical custody to Fidelity’s acclaimed enterprise-grade custody platform, combining Kingdom’s legal/regulatory wrapper with Fidelity’s technology. Kingdom Trust CEO Ryan Radloff noted that offering “bitcoin cold storage powered by Fidelity” was beneficial for security and could encourage larger institutions (comfortable with Fidelity) to participate (Fidelity Digital Assets to Custody Bitcoin in Kingdom Trust Retirement Accounts) (Fidelity Digital Assets to Custody Bitcoin in Kingdom Trust Retirement Accounts). In practice, Kingdom Trust clients can choose this route to have their BTC held by Fidelity (which uses its own blend of multisig, physical security, and 24/7 monitoring), under Kingdom Trust’s custodial oversight.

Customer-Controlled Keys: Unusually for a custodian, Kingdom Trust even experimented with letting customers hold their own keys in certain setups. Through the Choice IRA platform, it offered an option where clients could manage a private key (using a tool provided by Casa) while Kingdom Trust maintained an oversight role to satisfy IRA custody rules (Fidelity Digital Assets to Custody Bitcoin in Kingdom Trust Retirement Accounts) (7 Bitcoin and Crypto Custodians Facilitating Institutional Digital Asset Adoption). This shows Kingdom Trust’s willingness to adopt collaborative custody models beyond just institutional arrangements – effectively blurring the line between self-custody and third-party custody. In such a scenario, the client holds a key to their IRA’s bitcoin, but Kingdom Trust likely retains some mechanism (like a backup key or legal control via multi-signature) to meet regulatory requirements that an IRA asset has a custodian. This kind of flexibility in custody methods is rare, and it caters to security-conscious users who want sovereignty over keys while still benefiting from the legal status of a custodial account.

Technology and Audits: On the technology front, Kingdom Trust keeps specifics fairly private (for security reasons), but it follows industry best practices: air-gapped systems for signing transactions, strict internal controls (dual approvals, role separation) for handling private keys, and continuous monitoring. Given its partnerships, one can infer it uses multi-factor authentication, HSMs, and tamper-proof devices for key material. Kingdom Trust has also touted compliance certifications; for example, being a financial institution, it undergoes independent audits. (Its partner BitGo, for instance, undergoes SOC 2 audits (7 Bitcoin and Crypto Custodians Facilitating Institutional Digital Asset Adoption), and Kingdom Trust as a trust company is subject to regulatory examinations by banking authorities.) Kingdom Trust likely has SOC 1/SOC 2 type reports or similar, although those might not be public. It is known to segregate each client’s assets on the blockchain – i.e. not commingling coins in a single omnibus wallet. (In fact, Gemini Custody has highlighted using unique on-chain addresses per customer with verifiability (7 Bitcoin and Crypto Custodians Facilitating Institutional Digital Asset Adoption) (7 Bitcoin and Crypto Custodians Facilitating Institutional Digital Asset Adoption), and Kingdom Trust implements similar segregation to ensure transparency and easy auditing of each account’s holdings.) This segregation means even if Kingdom Trust is managing assets for thousands of clients, each client’s coins are held in discrete wallets, which are independently verifiable on-chain and reconciled to customer balances (7 Bitcoin and Crypto Custodians Facilitating Institutional Digital Asset Adoption). That enhances transparency and trust, as clients (or auditors) can confirm that their assets exist and are not being misused.

Insurance and Risk Mitigation: As noted, Kingdom Trust has insurance coverage on assets in custody. Initially $12 million coverage was reported, later increased – by 2020, it cited $100 million+ in insurance via Lloyd’s syndicates (though an exact figure wasn’t disclosed, it aimed to match competitors). By comparison, Gemini carries $200M in cold storage insurance (7 Bitcoin and Crypto Custodians Facilitating Institutional Digital Asset Adoption), and BitGo $100M. Insurance is a key risk mitigator for catastrophes. Kingdom Trust’s clients can also elect to use its custody or not for certain assets, thereby diversifying risk. For example, a customer might keep some funds with Kingdom Trust and some in personal custody to hedge against any one custodian. Kingdom Trust also maintains rigorous operational security protocols, including background checks for employees, multi-person controls to access vaults, and likely 24/7 video and alarm systems at storage sites. Its business continuity/disaster recovery planning ensures that even if something happens to the company (or if, say, the CEO loses access), clients’ assets remain safe and accessible via predetermined recovery processes (another benefit of the trust/legal structure).

Overall, Kingdom Trust’s security strategy is about layering: physical security (secure vaults), technological security (multisig, HSMs, encryption), operational security (policies, audits), and third-party assurances (insurance, external certifications). This multi-pronged approach is necessary given the high stakes of crypto custody. Notably, Kingdom Trust has not reported any major hacking incidents or loss of client crypto to date – a critical track record in an industry where some custodians and exchanges have suffered breaches. Its willingness to partner with top-tier firms (BitGo, Fidelity, Unchained) also indicates a recognition that strong security comes from collaboration and using the best tools available, rather than working in isolation.

Regulatory Compliance and Legal Considerations

Licensing and Regulatory Status: Kingdom Trust operates as a state-chartered trust company, which gives it fiduciary powers similar to a bank (but typically without deposit-taking). It was originally chartered in Kentucky and later in South Dakota, a state known for its favorable trust laws and crypto-friendly regulators (Unchained forms strategic relationship with Kingdom Trust - Unchained) (Unchained forms strategic relationship with Kingdom Trust - Unchained). Being regulated by the South Dakota Division of Banking means Kingdom Trust must maintain high standards of capital, internal controls, and undergo regular examinations. Crucially, as a trust company, Kingdom Trust qualifies as a “Qualified Custodian” under the U.S. Securities and Exchange Commission (SEC) custody rule and under Internal Revenue Code §408 for IRAs (BitGo Enters Into Agreement To Acquire Kingdom Trust | Business Wire) (Update: Bitcoin Startup BitGo Will Not Acquire $12 Billion Asset Custodian Kingdom Trust). This status is why Kingdom Trust’s services are used by Registered Investment Advisors and retirement account providers – it meets the legal requirement to hold client assets in a trust or bank when needed. The company explicitly “meets all applicable requirements…to serve as a qualified custodian” and has nearly a decade of experience doing so (BitGo Enters Into Agreement To Acquire Kingdom Trust | Business Wire). It does not engage in brokerage or advisory activities, positioning itself purely as a neutral custodian (which helped it gain regulatory approval more easily) (BitGo Enters Into Agreement To Acquire Kingdom Trust | Business Wire).

Compliance Programs: As a financial institution handling crypto, Kingdom Trust is subject to Bank Secrecy Act (BSA) and anti-money laundering (AML) regulations. This includes Know-Your-Customer (KYC) identification for clients and monitoring of transactions for suspicious activity. Historically, many trust companies operated in the alternative asset space with a lighter touch on AML (since they often just custody assets like real estate or private stock which are not as readily used for laundering as cash). However, the crypto element introduced higher risk, and regulators expected robust compliance programs. Notably, in April 2023, FinCEN (Financial Crimes Enforcement Network) took enforcement action against Kingdom Trust for past AML deficiencies (FinCEN Assesses $1.5 Million Civil Money Penalty against Kingdom Trust Company for Violations of the Bank Secrecy Act | FinCEN.gov). FinCEN found that Kingdom Trust “willfully” failed to implement an effective system to detect and report suspicious transactions, despite processing over $4 billion in international wires related to digital asset activities (FinCEN Assesses $1.5 Million Civil Money Penalty against Kingdom Trust Company for Violations of the Bank Secrecy Act | FinCEN.gov) (FinCEN Assesses $1.5 Million Civil Money Penalty against Kingdom Trust Company for Violations of the Bank Secrecy Act | FinCEN.gov). The trust company had “virtually no process” for filing Suspicious Activity Reports (SARs) for several years, resulting in hundreds of missed SAR filings – including transactions linked to a trade-based money laundering scheme and securities frauds that should have been flagged (FinCEN Assesses $1.5 Million Civil Money Penalty against Kingdom Trust Company for Violations of the Bank Secrecy Act | FinCEN.gov) (FinCEN Assesses $1.5 Million Civil Money Penalty against Kingdom Trust Company for Violations of the Bank Secrecy Act | FinCEN.gov). This led to a $1.5 million civil monetary penalty and a first-of-its-kind message that trust companies in crypto must adhere to the same AML standards as banks (FinCEN Assesses $1.5 Million Civil Money Penalty against Kingdom Trust Company for Violations of the Bank Secrecy Act | FinCEN.gov). Kingdom Trust admitted to these failures and, presumably, has since overhauled its compliance department. The enforcement was significant (FinCEN’s first against a trust company (FinCEN Assesses $1.5 Million Civil Money Penalty against Kingdom Trust Company for Violations of the Bank Secrecy Act | FinCEN.gov)), suggesting Kingdom Trust was made an example.

Since then, Kingdom Trust has likely invested heavily in compliance staffing, transaction monitoring software, and stricter onboarding. It now advertises a “Know Your Blockchain” approach – combining blockchain analytics with traditional AML to catch illicit activity. For customers, this means possibly more detailed source-of-funds questions or restrictions on certain high-risk transactions. While the fine was a reputational hit, it indicates that Kingdom Trust is under heightened regulatory scrutiny moving forward, which could actually bolster its rigor in compliance. By contrast, competitors like Gemini and Anchorage also faced regulatory audits (Anchorage received an OCC consent order in 2022 over AML shortfalls, and Gemini is regularly audited by NYDFS). The entire industry is ramping up compliance, and Kingdom Trust is now no exception.

Legal and Jurisdictional Considerations: Kingdom Trust being chartered in South Dakota means it operates under SD trust law. Client assets held by a trust company are legally segregated, bankruptcy-remote trust assets – i.e., if Kingdom Trust were to go bankrupt, the clients’ assets are not considered part of the company’s estate. This is a crucial legal protection (e.g., in contrast, some crypto exchanges’ users are just unsecured creditors). Kingdom Trust’s client agreements specify that digital assets are custodied for benefit of the client, with no lending or rehypothecation unless explicitly agreed (and Kingdom Trust has stated in Unchained’s context that collateral held is not rehypothecated (Unchained forms strategic relationship with Kingdom Trust - Unchained)). The company also maintains fiduciary liability insurance as a trust.

On the regulatory front, Kingdom Trust must comply with state banking regulations, IRS rules for IRA custodians, and any applicable SEC rules (for instance, if it holds assets for investment advisors, those advisors rely on Kingdom to issue account statements and undergo surprise audits per the SEC Custody Rule). Kingdom Trust has also obtained the necessary money transmitter licenses or exemptions in states if it facilitates movement of fiat funds (for example, if it wires money in or out for client asset purchases). The company’s Choice platform needing to handle USD likely required an arrangement (often, trust companies use partner banks for fiat; Kingdom likely did the same). It’s worth noting that Kingdom Trust was nearly acquired by BitGo in 2018 – the deal was announced but ultimately not completed, with BitGo choosing to pursue its own trust charter instead (Update: Bitcoin Startup BitGo Will Not Acquire $12 Billion Asset Custodian Kingdom Trust) (Update: Bitcoin Startup BitGo Will Not Acquire $12 Billion Asset Custodian Kingdom Trust). During that process, regulators would have vetted Kingdom Trust, and no major issues were cited publicly at that time.

One more legal saga: Kingdom Trust had a dispute with a partner, Bitcoin IRA (Digital IRA), around 2018–2019. Bitcoin IRA used Kingdom Trust as custodian for its clients, but the relationship soured when Bitcoin IRA started working with BitGo. Litigation ensued, with allegations that Kingdom Trust froze out Bitcoin IRA’s access to client information. A federal judge in SD ruled in 2019 in favor of Bitcoin IRA, ordering Kingdom Trust to restore access (Bitcoin IRA Wins Key Legal Battle Against Kingdom Trust) (US Federal Judge Rules in Favor Bitcoin IRA in Case Against ...). Eventually, as mentioned, Bitcoin IRA ended up acquiring Kingdom’s Choice platform in 2024, resolving their rivalry. This history illustrates the competitive and legal challenges custody providers face in the rapidly evolving crypto IRA market.

In terms of transparency, as a private trust company Kingdom Trust does not publish public financial statements or proof-of-reserves the way some crypto companies do. However, clients and partners might take comfort that it’s examined by regulators and was historically in good standing (apart from the FinCEN issue). Some users have expressed a desire for more transparency (for example, wanting clarity on fee changes or account policies), but overall Kingdom Trust’s compliance with regulatory filings stands in contrast to unregulated entities.

Industry Reputation, Trustworthiness, and Transparency

Pioneer Status and Recognition: Kingdom Trust is often regarded as a pioneer in crypto custody. It was one of the earliest regulated financial institutions to embrace bitcoin – launching services when few others would. In 2018, it was hailed as “the first regulated financial institution to offer qualified custody for digital asset investments” (Kingdom Trust launches custody platform - Asset Servicing Times). This early mover advantage garnered it a lot of industry attention. It developed a reputation as a trusted, conservative custodian bridging traditional finance and crypto. The fact that mainstream firms like Fidelity chose to partner with Kingdom Trust (providing sub-custody) and startups like Unchained Capital chose it as a key agent speaks to its standing in the community. Kingdom Trust’s leadership (notably CEO Ryan Radloff, formerly of CoinShares) has been vocal about expanding Bitcoin access in a responsible way (Fidelity Digital Assets to Custody Bitcoin in Kingdom Trust Retirement Accounts) (Kingdom Trust launches IRA supporting bitcoin ownership - Brave New Coin), which has helped position the company as pro-Bitcoin but compliance-minded.

Trustworthiness and Security Track Record: In terms of security track record, Kingdom Trust has not experienced public hacks or fund losses, which is a major plus. Clients generally have confidence that the firm is financially stable and not engaging in risky business with their assets. Kingdom Trust’s “long history of being a reputable financial custodian” is often cited in comparisons of top custodians (Best Crypto Custody Providers | Ulam Labs) (7 Bitcoin and Crypto Custodians Facilitating Institutional Digital Asset Adoption). Its dual focus on transparency and compliance alongside innovative services is sometimes highlighted in industry analyses (Best Crypto Custody Providers | Ulam Labs). For example, software firm Ulam Labs noted that Kingdom Trust “brings qualified custodian services” to a broad audience and is “among the most highly secure and qualified” crypto custody solutions, helping clients with transparency and accountability (Best Crypto Custody Providers | Ulam Labs). Such praise, however, typically preceded the 2023 compliance lapse news.

Impact of Compliance Lapse: The FinCEN penalty in 2023 did raise some eyebrows in the industry about Kingdom Trust’s internal controls. Being called out for “weak compliance” is not ideal for a custodian. Some in the crypto community expressed concern that Kingdom Trust’s issues might reflect a lack of investment in the boring, back-office side of the business (while they were busy innovating on IRAs). However, many also recognize that after such an enforcement, the firm will have improved its processes. It’s worth noting that Anchorage Digital (a comparable custodian) was hit with a similar rebuke by the OCC for AML shortcomings around the same time, so Kingdom Trust is not alone – it’s a sign of the whole sector maturing under regulatory scrutiny. Since then, Kingdom Trust has likely increased transparency with regulators, and it may publish more compliance information to regain trust (e.g. hiring compliance officers from big banks, issuing statements about filings). The fact that this was the first BSA enforcement on a trust company actually reflects that Kingdom Trust was operating in uncharted territory – regulators are now catching up and defining expectations.

Transparency to Clients: On transparency, Kingdom Trust’s fee structure and processes have sometimes been critiqued by users (more on that in the next section). The company does provide clients online account access (through its portal or the Choice app) where they can see their holdings and transactions. It likely doesn’t publish real-time proof-of-reserve audits to the public, but clients get account statements and can request confirmations of assets. Kingdom Trust is not as openly transparent about its operations as, say, a public company would be, but as a trust, it has to keep client info confidential anyway. It has however engaged third-party audits (for example, to verify precious metals holdings in vaults or to undergo security assessments). Its SOC 2 certification status isn’t publicly advertised, so it’s unclear if it has one, whereas competitors Gemini and Coinbase loudly tout such credentials.

Industry Relationships: Kingdom Trust has generally positive relationships in the industry. It’s been an integral part of the crypto IRA and custody niche for years. It often appears at blockchain conferences focused on institutional custody or retirement investing. The firm’s willingness to integrate with others (Kraken for trade execution in IRAs (Kingdom Trust launches IRA supporting bitcoin ownership - Brave New Coin), Fidelity for custody, Unchained for multisig, etc.) shows a collaborative approach, which has earned goodwill. It’s not seen as a competitor to exchanges or asset managers, but rather a service provider, so it’s rarely involved in public spats (aside from the Bitcoin IRA lawsuit which was more of a B2B fallout). In terms of public trust, Kingdom Trust’s name might not be as well-known to retail crypto users as, say, Coinbase or Gemini, because it doesn’t market directly for non-IRA crypto trading. But among Bitcoin OGs who care about long-term storage and multisig, Kingdom Trust’s involvement with Unchained gave it a positive nod.

Reputation vs Competitors: When compared to newer entrants (some of which have had very public failures, like Prime Trust – a Nevada trust company that became insolvent in 2023), Kingdom Trust looks relatively stable and reliable. It’s been around longer and (so far) has avoided the catastrophic failures seen elsewhere. Its transparency could be improved by publishing more about its security practices or financial health, but trust companies traditionally operate discreetly. The company’s leadership and ownership: It’s privately owned (it was previously led by founder Matt Jennings and later by Ryan Radloff and investors from CoinShares). Knowing who’s behind a custodian can affect trust – Radloff’s background in Bitcoin advocacy actually increases credibility among crypto circles, while the trust charter and board oversight appease traditionalists. There haven’t been scandals about management malfeasance reported.

In summary, Kingdom Trust is viewed as a credible and established player in crypto custody, albeit one that had some growing pains. Its strengths lie in its regulatory status and years of experience handling both crypto and other assets. Its weaknesses, as revealed, were in compliance lag (now being corrected) and at times customer service (scaling challenges as it grew). However, it remains a go-to custodian for many crypto businesses (especially those in the Bitcoin space and retirement space), indicating a generally solid reputation.

Customer and Industry Reviews

Customer Experiences: Reviews of Kingdom Trust (and its retail brand “Choice”) are mixed, with a divergence between newer crypto users (often positive) and some legacy self-directed IRA customers (often negative). On Trustpilot, Choice IRA/Kingdom Trust has a strong rating – around 4.4 out of 5 stars (with 100+ reviews) as of early 2025 (Choice IRA Review: Fees, Cryptos, & Alternatives [2025]). Many customers praise the easy-to-use app, flexibility of investments, and the security options (like being able to hold your own keys or having insured cold storage) (Choice IRA Review: Fees, Cryptos, & Alternatives [2025]) (Choice IRA Review: Fees, Cryptos, & Alternatives [2025]). Positive reviews often highlight that opening an account is straightforward and that Kingdom Trust/Choice made it simple to include Bitcoin in their retirement portfolio when other providers wouldn’t. Users also appreciated the free Bitcoin rewards that Choice offered (the platform gave small BTC rewards daily to IRA holders as a promotion) (Choice IRA Review: Fees, Cryptos, & Alternatives [2025]). On Reddit, some individual investors shared success stories: for example, one long-time Bitcoiner described Choice IRA as “pretty straightforward… a phone-app only platform” with no hidden minimums and an overall easy way to get Bitcoin exposure in a Roth IRA (Would love some advice for an IRA with Bitcoin exposure : r/Bitcoin). Such anecdotes show that Kingdom Trust managed to deliver a compelling product for crypto-savvy retail users.

However, there are notable complaints as well. On consumer sites and forums, Kingdom Trust has been criticized for customer service and fees, especially by those using it for traditional self-directed IRAs (holding precious metals, etc.). The Better Business Bureau (BBB) profile for Kingdom Trust is poor – roughly 1.6 out of 5 stars (Kingdom Trust Company Reviews | Self-Directed IRA Custodian) – with complaints about slow responses or account access issues. Similarly, Google reviews averaged below 3 stars (Kingdom Trust Company Reviews | Self-Directed IRA Custodian). Some users on Reddit and Bitcoin forums have warned others “not to use Choice or Kingdom Trust” due to their experiences (Options for a Crypto IRA : r/Bitcoin). Common issues raised include: difficulty reaching support staff by phone, delays in processing distributions or transfers, and various fees. For instance, one Redditor mentioned that Choice’s fees were too high, prompting them to roll their crypto IRA over to Fidelity once Fidelity offered crypto investment options (Options for a Crypto IRA : r/Bitcoin). Another commented that Kingdom Trust charges fees “for every little thing, including statements,” and lamented poor service responsiveness (Options for a Crypto IRA : r/Bitcoin). It appears that during periods of rapid growth (like the 2021 bull market), Kingdom Trust’s support lagged, leading to frustration. It’s worth noting that the Choice platform originally advertised “no annual fee IRAs” for crypto, but they do have other fees (like a small percentage on trades, and custody fees if you choose certain storage methods) (Choice IRA Review: Fees, Cryptos, & Alternatives [2025]). Misunderstandings around these fees may have contributed to negative impressions.

Trust and Satisfaction: Despite some customer service complaints, there haven’t been reports of customers losing funds or any mishandling of assets. In fact, some long-term clients (especially those with alternative assets or Bitcoin IRAs) remain loyal. Industry experts have reviewed Kingdom Trust as a reliable IRA custodian overall. For example, a crypto IRA review site gave “Choice by Kingdom Trust” a high rating (8.9/10) in February 2025, citing its unique self-custody option and strong security as positives (Choice IRA Review: Fees, Cryptos, & Alternatives [2025]) (Choice IRA Review: Fees, Cryptos, & Alternatives [2025]). The review noted “industry leading security” and the breadth of crypto supported (20+ coins) as key strengths (Choice IRA Review: Fees, Cryptos, & Alternatives [2025]). It also acknowledged the free BTC rewards and intuitive mobile app as customer-friendly features (Choice IRA Review: Fees, Cryptos, & Alternatives [2025]) (Choice IRA Review: Fees, Cryptos, & Alternatives [2025]). The criticisms in that review aligned with user comments: there are monthly custody fees for certain accounts and the platform is U.S.-only (Choice IRA Review: Fees, Cryptos, & Alternatives [2025]).

On social media like Twitter (X), some users have shared positive outcomes using Kingdom Trust’s collaborative custody – for instance, Unchained Capital clients feel reassured knowing a reputable third-party (Kingdom) holds a key to back them up. Meanwhile, financial advisors in the alternative asset space sometimes mention Kingdom Trust as one of the big three IRA custodians (alongside Equity Trust and STRATA Trust) for non-traditional assets, implying a level of trust in its capabilities built over years.

Response to Feedback: Kingdom Trust’s team has at times responded to public feedback. They have improved their customer portal and introduced more self-service features to alleviate support wait times. After criticisms about communication, they implemented a callback system so customers could schedule a time to talk with a specialist (instead of endless hold times). Some early issues (like slower transfers) were due to legacy systems that have since been upgraded. The sale of the Choice platform to Bitcoin IRA may also improve the user experience for retail customers, as Bitcoin IRA specializes in customer-facing service, leaving Kingdom Trust to focus on custody and operations.

In summary, customer reviews reflect a balance: security and product features get high marks, whereas fees and support have room for improvement. For a user primarily concerned with safe, long-term storage of crypto in an IRA or via multisig, Kingdom Trust is often recommended and seen as trustworthy (Would love some advice for an IRA with Bitcoin exposure : r/Bitcoin). For a user expecting fast trading or hand-holding customer service, it might come up short versus more retail-focused firms. It’s telling that some users chose Kingdom/Choice when few alternatives existed, but as soon as giants like Fidelity and Schwab offered crypto options, a subset migrated for potentially lower fees or integrated brokerage features (Options for a Crypto IRA : r/Bitcoin). Nonetheless, Kingdom Trust’s ability to enable true bitcoin ownership in retirement accounts (actual BTC, not just ETFs) remains relatively unique, and many reviews acknowledge that value despite any frustrations.

Comparison with Other Major Crypto Custody Providers

To put Kingdom Trust in context, it’s helpful to compare it with a few other leading crypto custodians – BitGo, Anchorage, and Gemini Custody – each of which represents a different approach to digital asset custody. All of these are well-known, regulated entities in crypto custody, but they differ in target market, technology, and services. Below is an overview of how Kingdom Trust stacks up against these peers:

  • BitGo: Founded in 2013, BitGo is a pioneer in crypto security technology and now a major custodian. BitGo operates a South Dakota trust company (and also received a New York Trust Charter in 2021 for NY clients) (7 Bitcoin and Crypto Custodians Facilitating Institutional Digital Asset Adoption). BitGo’s core strength is its multi-signature wallet infrastructure – it was the first to implement multisig on a wide scale and its platform is used by many exchanges and fintechs. BitGo today supports custody of 100+ digital assets with a combination of cold storage and hot wallets for institutional clients (7 Bitcoin and Crypto Custodians Facilitating Institutional Digital Asset Adoption). Like Kingdom Trust, BitGo is a qualified custodian (it actually almost acquired Kingdom Trust in 2018, as mentioned). BitGo’s focus is strictly on digital assets; it doesn’t custody traditional assets or run IRA programs itself. It caters heavily to institutions: exchanges, hedge funds, and even other custodians. BitGo’s custody comes with advanced features like configurable policy controls, multi-user approvals, and API access for programmatic management (7 Bitcoin and Crypto Custodians Facilitating Institutional Digital Asset Adoption). The company emphasizes security certifications and audits – for example, BitGo undergoes annual SOC 2 audits by third parties (7 Bitcoin and Crypto Custodians Facilitating Institutional Digital Asset Adoption), ensuring its processes meet high standards. BitGo also carries a substantial insurance policy (around $100 million) and has a reputation for zero security breaches. In terms of services, BitGo has expanded into a crypto prime brokerage (offering trading, lending, etc., on top of custody), which Kingdom Trust does not do. BitGo’s custody is generally institutional-only – individual retail users typically access BitGo via a third party (e.g. if you use an exchange that uses BitGo in the background). By contrast, Kingdom Trust directly serves individual account holders (especially in IRAs). BitGo and Kingdom Trust have in some ways converged (BitGo got a trust charter and is adding insurance, which Kingdom had; Kingdom added multisig key partnerships, which BitGo pioneered). The key difference: BitGo is seen as a tech-centric custodian with a global client base, while Kingdom Trust is a financial institution custodian with a niche in IRAs and collaborative custody. Both are respected – in fact, Unchained Capital lists both BitGo and Kingdom Trust as approved key agents on its platform (What is a bitcoin key agent? - Unchained). BitGo might edge out on pure crypto expertise and huge transactional volumes (it reportedly processed $10+ billion in crypto transactions per month in 2018) (BitGo Enters Into Agreement To Acquire Kingdom Trust | Business Wire), whereas Kingdom Trust has the multi-asset flexibility and a longer track record in regulated trust operations.

  • Anchorage Digital: Anchorage, founded in 2017, took a different path by becoming the first federally chartered crypto bank in the U.S. (through an OCC charter obtained in January 2021). This means Anchorage is regulated at the federal level, unlike Kingdom Trust’s state charter. Anchorage’s services are exclusively institutional. It provides a full suite: custody, trading, staking, financing, and governance for digital assets (7 Bitcoin and Crypto Custodians Facilitating Institutional Digital Asset Adoption). In custody, Anchorage is known for using a combination of hardware security modules and secure enclaves (MPC and SGX technology) instead of traditional seed phrases – they proudly say there are “no private keys to misplace” because of their threshold signing approach. They require biometric authentication and multi-step verification for any transaction. In practice, Anchorage’s setup is somewhat like multisig but at a hardware level distributed among their systems. They support dozens of cryptocurrencies, especially catering to ones institutional investors demand (BTC, ETH, DeFi tokens, etc.) (7 Bitcoin and Crypto Custodians Facilitating Institutional Digital Asset Adoption). A key differentiator is that Anchorage, as a bank, can integrate with other banks and offer services like crypto custody for institutional clients under a clearer regulatory umbrella. They also advertise insurance covering the assets through their entire life-cycle in custody (from deposit to storage to transfer) (7 Bitcoin and Crypto Custodians Facilitating Institutional Digital Asset Adoption). Anchorage’s target clients are crypto funds, corporations, and even protocols (for example, they custody assets for certain blockchain foundations). Compared to Kingdom Trust, Anchorage does not offer retail IRA accounts or any non-crypto assets – it’s laser-focused on being an institutional gateway to crypto. In terms of reputation, Anchorage is seen as very cutting-edge technologically (founded by security engineers) and has big-name backers. However, being newer, it doesn’t have the long history of custody that Kingdom Trust has in other asset classes. Also, Anchorage fell under scrutiny by regulators (the OCC) for needing to beef up its AML compliance (similar in spirit to Kingdom’s FinCEN issue) – indicating that even a tech-forward firm can stumble on compliance. For an institutional client deciding between them: Anchorage offers a perhaps more modern, integrated platform with a federal charter, while Kingdom Trust offers a simpler, proven trust model with the ability to handle assets beyond crypto and novel collaborative custody setups. Some large institutions might prefer Anchorage’s national oversight, whereas others are comfortable with Kingdom’s state oversight which has been effective so far. Both aim to serve the same institutional market segment (banks, investment firms), though Anchorage’s bank charter could become an edge if SEC rules start favoring banks as custodians.

  • Gemini Custody: Gemini, known as a cryptocurrency exchange founded by the Winklevoss twins, also runs a custody arm called Gemini Custody. It is a New York State-chartered trust company (est. 2015), regulated by the NYS Department of Financial Services, which inherently makes it a qualified custodian. Gemini’s custody service is often packaged with its exchange (users can have assets in “Gemini Custody” which are segregated from the trading platform, or institutions can use Gemini solely as a custodian). Gemini Custody is designed for both institutional and high-net-worth clients, and even retail users who simply want to store assets securely without trading. Gemini emphasizes security and compliance very heavily – it underwent SOC 2 Type II security audits (one of the first crypto firms to do so) and achieved high compliance marks. In terms of insurance, Gemini secured a $200 million cold storage insurance policy, reportedly the largest of its kind in crypto custody (7 Bitcoin and Crypto Custodians Facilitating Institutional Digital Asset Adoption). They segregate client assets with unique on-chain addresses and provide proof of ownership audits to clients (7 Bitcoin and Crypto Custodians Facilitating Institutional Digital Asset Adoption). One advantage is that Gemini Custody can allow instant trading liquidity: a client can keep coins in cold storage at Gemini and yet sell them on the Gemini exchange quickly by moving them internally, which marries security with convenience. However, unlike Kingdom Trust, Gemini will not custody non-crypto assets or run an IRA for you (though you could certainly use Gemini Custody as the storage solution within a self-directed IRA managed by an IRA LLC, for example). Gemini’s reputation is generally strong on the custody side – it has never been hacked and has been very transparent with regulators. That said, recent events in the wider Gemini business (the Gemini Earn program issues in 2022–23) caused some reputational dents to the brand, but those did not involve the custody product. Many institutional investors (like asset managers launching Bitcoin ETFs or funds) have used Gemini as their custodian due to the New York trust oversight and the big insurance coverage. In comparison, Gemini Custody vs. Kingdom Trust: Gemini is often the choice for exchange-integrated custody and those who value NYDFS regulation, whereas Kingdom Trust might be the choice for those who want a more customizable or collaborative custody setup (like multisig with personal keys) or an IRA structure. Gemini’s fee structure for custody is geared to large accounts (they charge an AUM fee and hefty withdrawal fees for custody clients), while Kingdom Trust’s fees for something like an IRA can be lower for a small account (Gemini has no free retirement account offering, it would be DIY). Both are highly secure; Gemini might have an edge in formal security certifications and sheer insurance amount, while Kingdom Trust’s edge is in personal touch services (like aiding with inheritance planning in multisig, etc.) and flexibility.

In addition to these three, there are other notable custodians: Coinbase Custody (a giant with a NY trust license and global client base), Fidelity Digital Assets (focusing on institutional custody and trading for Fidelity’s clients), Bakkt (which also got an NY trust charter and serves institutions with a $125M insurance coverage (7 Bitcoin and Crypto Custodians Facilitating Institutional Digital Asset Adoption)), and newer startups like Fireblocks (though Fireblocks is more custody technology provided as a service, used by other institutions). Kingdom Trust finds itself in a competitive field where scale, tech, and trust are key. It doesn’t have the tech platform scale of Coinbase or the Wall Street name of Fidelity, but it carves out market share by being innovative (with products like Choice and collaborative custody) and by leveraging its longevity in custody.

Summary of Comparison: All four – Kingdom Trust, BitGo, Anchorage, Gemini – are qualified custodians safeguarding billions in crypto, but their approaches differ:

  • Regulatory form: Kingdom (state trust), BitGo (state trust + NY charter), Anchorage (federal bank), Gemini (NY trust).
  • Client focus: Kingdom (individuals and institutions, especially IRA holders), BitGo (primarily institutions/crypto businesses), Anchorage (institutions only), Gemini (mix of retail exchange users and institutions).
  • Security approach: All use cold storage and multi-factor controls. BitGo pushes multisig tech and wallet APIs; Anchorage uses MPC/hardware enclave tech; Gemini uses a traditional HSM-based cold storage with auditing; Kingdom Trust uses a blend of multisig and partnerships (BitGo, Fidelity) plus classical cold storage. Each has strong insurance coverage (Kingdom’s is undisclosed but Lloyd’s-backed; BitGo $100M; Anchorage also insured, amount not public; Gemini $200M).
  • Additional services: Kingdom offers alternative asset custody and IRA services; BitGo offers liquidity services (trading, lending); Anchorage offers staking/governance and financing; Gemini offers integration with exchange and dollar on/off ramps.
  • Industry reputation: All are reputable, with Gemini and BitGo often cited as gold standards for crypto custody security (7 Bitcoin and Crypto Custodians Facilitating Institutional Digital Asset Adoption) (7 Bitcoin and Crypto Custodians Facilitating Institutional Digital Asset Adoption). Anchorage is viewed as cutting-edge and bank-regulated, though newer. Kingdom Trust is seen as a solid veteran in the space with unique offerings, but slightly less in the public eye than the others. Each of these firms has contributed to making institutional crypto custody a reality, giving traditional investors confidence to hold crypto.

Ultimately, the “best” custodian depends on the user’s needs. Kingdom Trust distinguishes itself by bridging the traditional and crypto worlds (holding anything from Bitcoin to real estate in an IRA) and by participating in multi-institution custody networks (as with Unchained) to enhance security. In contrast, BitGo and Anchorage position themselves as pure-play digital asset custodians with high-tech security, and Gemini positions as a full-service crypto financial platform with top-notch compliance. Many companies actually use multiple custodians for redundancy (for example, a fund might split assets between Gemini Custody and Kingdom Trust to mitigate risk). Kingdom Trust, with its new focus on core custody post-Choice, will likely continue to partner and complement these other major players rather than compete head-on for exactly the same clients.

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history Published Apr 01, 2025

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