Create A Bitcoin Trust Fund For Your Child — Nested

Gone are the days where bonds were a good idea for grandparents to save for their newborn grandchildren. With interest rates at record lows and the current high inflation environment, Bonds will lose large portions of their value before they are able to be cashed in. So where can we find an investment option that will be a good store of value in the long run? We at Nested think Bitcoin will become the obvious answer.

Bitcoin is appearing as an increasingly interesting option to save for a child's financial future and is proving its ability to be used as a store of value. Only time will tell if Bitcoin will emerge to truly become the world’s reserve currency, however, due to its fundamental characteristics and increasing use cases around the world, Bitcoin has the potential for significant value appreciation over the next 20 years.

Nested Makes Creating a Bitcoin Trust Fund Easy

We at Nested are building a solution to help everyone easily save Bitcoin for their child’s financial future. Nested allows users to set up a secure Bitcoin wallet for their child with built-in features that allow the wallet to mirror the characteristics of a traditional trust.

Defining the users for Nested

The Beneficiary

The beneficiary is the recipient of the fund and is who the Bitcoin Trust Fund is made for. All contributions to the account will be held in the beneficiary’s legal name with a 3rd party custodial provider. When the Beneficiary reaches a certain age, he/she will receive full access to the fund. In the majority of use cases, the Beneficiary will be a child, however, a Bitcoin Trust Fund with Nested is able to be created for any US citizen.

The Custodian

The Custodian is the person who sets up the Bitcoin Trust Fund for the Beneficiary and has special account privileges. When setting up the Trust Fund for the Beneficiary, the Custodian is able to set the timelock duration on the account and therefore decides when the Beneficiary will receive the funds.

The Custodian also invites the Account Guardians on the account and also is able to invite contributors to contribute Bitcoin to the Fund. The Custodian is also the only user who is able to process a withdrawal on the account, however, any withdrawals will only be completed if they gain majority approval from the Guardians

Guardians (Key Holders)

The Account Guardians are family and friends of the Custodian who play a role in securing the funds for the Beneficiary. All of the funds in a Bitcoin Trust Wallet have a time lock which is set by the custodian when they create the account. The Custodian is able to request the withdrawal of funds before the end of the timelock, however, the withdrawal will only be processed with a majority consensus from the Guardians. The Guardians, therefore act as a social locking mechanism for the account, and it will be their decision if the funds are needed for the benefit of the child before the timelock period.

Contributors

Contributors are family and friends who want to contribute Bitcoin to the Beneficiaries account. Contributors can be invited by the Custodian to contribute Bitcoin to the account. Contributors are able to purchase Bitcoin with fiat that will be immediately gifted to the beneficiary and held in the Trust Fund until the end of the timelock period.

Nested’s Wallet Overview

Predetermined Lockup

When establishing an account for a beneficiary, the custodian will be able to set a time in the future when the beneficiary will have access to the funds. This can be set to when the beneficiary reaches a certain age such as their 18th birthday.

Easily Shareable

For each account, the Custodian is able to invite family and friends to be able to contribute to the fund. The Custodian will be able to invite contributors by using both e-mail and shareable links.

Contributors will be able to purchase Bitcoin from fiat, directly into the Beneficiaries Trust Fund, and legally held in the Beneficiaries name. Contributions will be able to see how much their contributions have grown over time, but will only be able to see their total contribution value and not the total value of the Beneficiaries fund.

Highly Secure

The Bitcoin is held in the name of a beneficiary through a registered and licensed custodian with industry-leading security practices. For users that would prefer to have self custody of their Bitcoin, they are able to withdraw the funds to their own wallet, assuming the Guardians of the account are in agreement.

Nested is scheduled to launch in the Fall of 2021 and will initially serve the US market only. If you are interested in being kept up to date with our launch you can sign up for our mailing list.

Have any comments or questions? We would love to hear from you! Reach out to us at jordan@getnested.co

Jordan Johnson — Founder of Nested