Custody

Casa is dramatically shifting its business, and it’s kicking off with two new products

Quick Take

  • Casa is a crypto custody startup that has raised over $3.5 million
  • On Thursday the startup announced its new products which include a revamped iOS mobile app and a completely new Android app
  • Casa also announced a new tiered model for its Keymaster custody solution

Casa, the cryptocurrency custody startup that aims to maximize safety and security for its crypto users, announced a “core shift” to its business. 

And it is kicking things off with the release of two new products, CEO Jeremy Welch, told The Block in an exclusive interview.

“We are ready to bring multi-sig security to everyone at every price point,” Welch said, emphasizing the heart of the new mission.

Casa wants a “key manager app in every pocket and a node in every home.” The two new offerings are as follows: a Keymaster mobile app available for iOS and Android and a four-tiered Keymaster package at different price points and security-levels.

Last year the company released its first premium product dubbed “Keymaster,” a multi-signature service for bitcoin investors. Soon after, Casa announced its plug-and-play Bitcoin Lightning node, the “Casa Node,” to much fanfare, selling out its initial batch in two hours. Casa tells The Block that it has shipped over a thousand Casa Nodes since it was released.

The Casa Node

Casa’s big shift will help bring the security of multi-sig technology into the hands of more people. And while this business shift has always been part of its roadmap, Casa’s announcement today completely revamps its approach to selling its products — going from a premium single-tier product to a multi-tiered and multi-priced product line.

Keymaster mobile app

The Keymaster mobile app will offer three different types of key setups:

  1. Mobile key, which is comparable to the mobile wallets offered by the likes of Blockchain and Coinbase.
  2. A two-of-three basic multi-sig key which lets users set up three multi-signature keys, one on their mobile device, one on a hardware wallet like Trezor or Ledger, and one as a recovery key maintained by Casa. For this service, users would need to use two of the three keys to initiate a bitcoin transaction.
  3. A three-of-five multi-sig key which lets users set up five multi-signature keys, one on their mobile device, three on hardware wallets like Trezor or Ledger, and one as a recovery key maintained by Casa.

Keymaster packages

The Keymaster packages are at the center of today’s announcement. Welch tells The Block that while some users were concerned about the pricey $10,000/year Keymaster, that high price point allowed his team to release the lower-tiered products announced today. Casa previewed the new-tiered packages in a blog post on Wednesday. The new Keymaster packages will come in four tiers:

  1. Silver, an a la carté service that offers a two-of-three multi-sig key. While this service is free to use, users are charged 10 basis points of their funds if they need access to Casa’s recovery key.
  2. Gold, a $300/year service that offers a two-of-three multi-sig key and Casa Node.
  3. Platinum, an $1,800/year service that offers a three-of-five multi-sig key and Casa Node aimed at single users.
  4. Diamond, a $5,000/year service offers a three-of-five multi-sig key and Casa Node aimed at families, small funds, and family offices.

Furthermore, Welch tells The Block that Gold, Platinum, and Diamond clients will get a new unannounced Casa product set to release in a week.

Casa’s 3-of-5 multisig setup

There are many crypto custody services on the market, such as BitGo, Coinbase Custody, and Xapo. Casa, however, is focused on what it calls “data sovereignty.” Furthermore, the firm’s concerns about the data privacy of their clients led them to build an “entirely self-hosted customer support platform with no analytics.”

“Incentivizes get mismanaged in a lot of companies,” Welch says, citing recent data scandals surrounding tech giants like Facebook and Google. “Respecting client data will ultimately be better for business,” he adds.

While this may be a virtuous path for a crypto company to take, there is a question of how scalable it is. With zero tracking apps, Casa relies solely on customer interactions and feedback to drive its development. When asked whether they can scale, Welch tells The Block that “this model will scale to millions of users” and it “drives more authentic customer experiences.”

“Customers are way more willing to talk to us,” he added.