Building Swan Guard: Raising the Standard Across the Bitcoin Custody Spectrum

I’ve spent years immersed in the world of technology and startups, but my deep dive into Bitcoin wasn’t just about the tech; it was personal. Growing up in the former USSR, I saw firsthand the devastating impact of autocratic regimes that controlled capital and suppressed basic freedoms. Bitcoin, to me, is fundamentally about reclaiming that financial freedom. It’s about building your stash of freedom cash and ensuring that your wealth is something you control, not something dependent on trusting a government or a central bank.

A cornerstone of this freedom is controlling your private keys. As I often say, and as we emphasize at Swan, “Not your keys, not your coins.” This is the absolute north star for every Bitcoiner: achieving self-custody, where you alone hold the keys that control your Bitcoin.

However, the reality is that most people acquire Bitcoin through a third party, at least initially. Even transferring Bitcoin requires trusting the recipient with the expectation they won’t steal it or that laws will enforce its return, neither of which is guaranteed by the Bitcoin blockchain itself. Furthermore, various use cases, like IRA accounts or accounts for clients of registered investment advisors, necessitate the use of a custodian due to regulations.

We understand that there’s a spectrum of how people choose to secure their Bitcoin, ranging from full self-custody to various forms of collaborative or third-party custody. Each point on this spectrum has its own risks. Full self-custody means you bear the risk of losing your keys to theft, damage, or simple loss, and you need a plan for inheritance. Using a third party introduces custody risk (mismanagement, theft), bankruptcy risk (will you get your coins back if they fail?), and regulatory risk (will the government shut them down or freeze your assets?).

At Swan, our mission is to help you navigate this landscape and partner with you to take control of your financial future with Bitcoin. We strongly believe that self-custody is the ultimate goal, and we actively support clients in achieving this with automatic complimentary weekly withdrawals with a threshold you set, and extensive education on how to secure your own keys. We make it as easy as possible to move your Bitcoin off our platform.

But for the moments when your Bitcoin is not in your custody — whether briefly during acquisition, while you’re learning self-custody, or if you choose one of our collaborative custody options — we are dedicated to providing the highest possible level of security and service.

This is where Swan Guard comes in. It’s a new standard, a suite of security enhancements and elevated service features designed to provide industry-leading protection for our clients and their Bitcoin assets while they are in our care or utilizing our supported custody solutions. Built on years of experience with 150,000+ clients and billions of dollars of Bitcoin transactions, we have dedicated significant time and effort to securing our systems and helping clients avoid account takeovers and scams.

Swan Guard provides a robust set of protections, including:

• Dynamic risk controls through machine intelligence and white glove human oversight by senior-level analysts. Many of our controls work quietly in the background, keeping you safe, without creating friction for daily activity.

• Dedicated escalated support with US-based security personnel for urgent issues.

• On-chain monitoring for withdrawals to known scam addresses and other high-risk activity.

• A client-initiated lockdown feature allowing you to protect your account in two taps.

• Education on Bitcoin security and personal operational security.

• Enhanced personal screenings to protect clients against scams, performed by Bitcoiners who understand you and your needs.

• Opt in to full lockdown mode for accounts that rarely move their coins.

• Proactive monitoring of ongoing social scams, with warnings specific to recent campaigns embedded in our apps.

• Our recently completed SOC2 Type II audit proves your data is protected by rigorous, independently verified security practices—continuously, not just once.

• Coins held with a regulated financial institution in your name, not Swan’s name — you have a direct, first-party contractual relationship with a reputable and highly regulated financial institution holding your coins.

We are also continuously developing new features under the Swan Guard umbrella, such as client security reviews, device/location/wallet whitelisting, secure in-product messaging, Passkeys, and proactive detection for compromised emails, for enhanced login security.

For those clients who are not yet in full self-custody, Swan offers different options, each enhanced by the Swan Guard security layer:

• Swan Safe: Provides segregated custody through partnerships with regulated financial institutions, to which you get first-party access. When choosing a custodian, it’s paramount to partner with regulated financial institutions operating under robust regulatory frameworks in jurisdictions with strong property rights. Swan Safe offers this, bolstered by Swan Guard’s additional security layers. 

• Swan Vault: A collaborative multisignature setup where you retain total control with keys stored offline, but benefit from expert guidance and assistance during setup with a complimentary onboarding call. Swan co-signs your transactions after risk and security checks by Swan Guard, or acts as a backup key, should you ever lose one of yours. This offers a path towards greater personal control without having to “go it alone”. 

Historically, our goal has always been to get as many Bitcoiners into self-custody as possible. For this reason, our custody options continue to encourage clients to move coins off of custodians. Custody fees are entirely waived for clients who set up automatic withdrawals to self-custody. Swan Vault clients get world-class security and client experience with peace of mind from Swan monitoring and co-signing their transactions at only 0.02% per month. Clients who use Swan Safe, with coins stored at a regulated financial institution in their own name, secured by Swan Guard, will pay 0.03% per month.

Ultimately, the goal remains the same: to help you achieve financial freedom through Bitcoin. While self-custody is the pinnacle of this freedom, we recognize the journey and the need for secure options along the way. Swan Guard is our commitment to providing that security and support, no matter where you are on your path to owning your future.