Fold Bitcoin Buying & Custody Update

David -

We have important news regarding Fold's Bitcoin buying and custody capabilities.

TL;DR:
We've made major upgrades to our custodial strategy, laying the groundwork for significant improvements to the Fold bitcoin buying experience. Bitcoin buying is temporarily paused, but bitcoin withdrawals are back to 100% available.

Since its introduction in late 2022, we have worked tirelessly to create the best and easiest bitcoin buying experience in the industry. Today, we are thrilled to announce significant improvements and upgrades that will enhance your long-term experience.

Fold’s custodial strategy seeks to minimize friction for new bitcoiners, and maximize security for the bitcoin they start to earn and buy. Ultimately, we encourage self-custody as the ideal solution for all bitcoin holders, especially as any significant wealth accumulates. Fold aims to be the best place to accumulate bitcoin, not hold it.

To provide the best way to earn and buy bitcoin, we have:

  1. Added new liquidity partners to provide diversification, and offer the lowest cost spreads possible.
  2. Created redundancy across qualified custodians to protect against single points of failure.
  3. Strengthened our foundation to ensure a unique bitcoin buying experience with rewards, fun, and unique ways to stack.

Fold has implemented this strategy by moving to a multi-layer custody structure with two qualified custodians, Fortress Trust and Bitgo. This gives all Fold users multiple layers of security with qualified custodians that are fully-reserved and insured with over $250,000,000 in insurance on assets.

Short-term impact on the your experience in the Fold App will be the following:

  1. Reward withdrawals will be temporarily switching back to a once-a-week batch (every Tuesday)
  2. Buying bitcoin is temporarily paused and will be returning in July

These changes will bring significant improvements to the Fold bitcoin buying experience in coming months. In addition to establishing a path to returning services to all 50 states (including CT, HI, NC, SD, TX, NY, ID & ME), we're excited to announce a suite of brand new features giving you more ways than ever to stack bitcoin:

  1. Round-Ups: a convenient way to invest your spare change into bitcoin
  2. Flexible Dollar-Cost Average buying options for greater investment control
  3. Lightning network withdrawals
  4. $250,000,000 insurance on assets

We sincerely appreciate your continued support and loyalty as part of the Fold community. If you have any questions or concerns, please check the full migration FAQ and don't hesitate to reach out to our customer support team.