Swiss bank now does 3-of-5 multisig bitcoin loans but you only get 1 key

[X-ray]

Honestly what's the point of 3-of-5 multisig with only 1 key, you can do nothing and it's the same as having read only wallet, you're a passive observer.

Since you're putting your bitcoin as a collateral to borrow money it's not really wrong to let them get control over your Bitcoin, but wouldn't it be more simpler to let the bitcoin in their custody and let them tell you the address because it would achieve basically the same thing?

Sounds like buzzword to me unless other keys holder are from independent companies not in cahoot and serve as countermeasure against insider job but they decided not to be transparent about it, so you could never know.

[Nheer]

A 3-of-5 multisig where you only hold one key isn't a multisig for you, it's a multisig for them.

Also, 65% LTV is incredibly aggressive for Bitcoin. A single nasty weekend wick could easily trigger a margin call, and by the time you wake up and check your email, those three anonymous keys will have already signed away your stack.

I agree, this setup is definitely more of a  Multisig for them than it is for you. A 3 of 5 Multisig wallet where you hold only 1 key is concerning because you practically don't have control of the wallet and can't authorize a transaction on your own, and what's more bothersome is that the other key holders can potentially move the funds without your involvement if three of them collaborate. And the fact that the other key holders are undisclosed makes it more concerning, though it doesn't mean they'll try to move your funds without your knowledge but the risk is there since you don't have full control of the wallet. Maybe it was made this way to protect the lenders.

What worries me most is people taking such high risk and still giving up control over their Bitcoin. I mean, you're already exposed to risk of price crash.