The bitcoin associated with your loan collateral is secured using multisignature addresses in a 2-of-3 quorum.
Collateral Type
The trust structure which backs Unchained loans only accepts bitcoin. We have no plans to support other cryptocurrencies. The bitcoin is not rehypothecated at any time.
Storage
Unchained secures bitcoin associated with your loan collateral using multisignature addresses in a 2-of-3 quorum using private keys distributed across multiple cities and authorized signing staff.
Our multi-institution model is a secure and trust-minimized way of storing the bitcoin associated with your loan collateral. There are three key holders: Kingdom Trust, Unchained, and the borrower. To move any bitcoin stored at an address, two of the three keys will be required to sign.
Holding a key to your loan allows you to get your bitcoin back faster, gives you the ability to check your addresses associated with your loan collateral on a hardware wallet, and eliminates Unchained as a single point of failure for your bitcoin.
Unchained does NOT rehypothecate, or lend to other people/entities, any bitcoin backing an Unchained loan. The bitcoin associated with your loan collateral is secured in multi-signature addresses and is viewable on the blockchain.