Secure your crypto business with Multis Wallet Management
A generally well known practice in the corporate business world is to open separate and distinct business bank accounts for legal and regulatory reasons. However, it hasn't translated to web3 yet, where corporate and personal wallets are often mixed in the initial phase of projects.
Opening a company wallet is also essential for reporting and is often brushed aside because "transactions are on-chain and can be sorted out later". Good luck with Etherscan!
Having personal and company wallets merged can also be troublesome from a reputational standpoint. With all activity and transactions being viewable on-chain, you don't want your personal decisions impacting the image of your company.
Let's get into why is it so crucial to separate wallets. And by the way ... why have 1 company wallet when you can have 10?
Secure your personal and company funds
As mentioned above, mixing personal and company wallet management can be troublesome in certain situations.
On top of being a reputational danger, you're holding yourself and your personal finances liable when you mix wallets. Let's imagine your company goes bankrupt and owes money to creditors — they will collect your personal funds on the given account. Not ideal, right?
Let's go further than liabilities and look into wallet security. In the grand scheme of things, wallet management is becoming a mandatory discipline to secure and structure crypto assets within companies.
Still overlooked by many (75% of companies we talk to still don't have a proper wallet management setup), multiple wallet management has many benefits:
- Mitigating risk by scattering funds across wallets. Having all of your assets in a single wallet will expose you to a higher risk of being hacked (even though Gnosis is almost impossible to hack. The magic of multisigs!) — or get insured by Vouch!
- Using it as an opportunity to add structure to your crypto finances — for example, create a wallet for each team in order to categorize transactions and facilitate EoY reporting all around! Or create a wallet for each chain you'll be transacting on (multi-currency wallets can become a mess).
Better understand and keep track of your business P&L
Another non-negligible aspects of organizing with multiple wallets is accounting/bookkeeping/reporting. We all know of the struggles of searching for transactions on Etherscan in February, and don't want to go through that again (your accountant doesn't either).
Thanks to the structure you built, you'll be able to reconcile transactions, automate categorizaton, and identify patterns.
On top of that, plug in a software solution like Multis to have a general overview of your finances across all crypto wallets and bank accounts:
- Plug in multiple wallets, from different chains (Ethereum & Polygon) and connect them to a USD checking account to expense swiftly.
- Thanks to our open banking integrations, you can also track all of your other bank accounts to have a deeper understanding of the entirety of your financial operations.
Multis — the easy solution for clean spend management
Let's go through what your crypto finances could look like:
- All of your multisignature Safe wallets are linked and sorted within the Multis interface, and connected with a USD checking account to exchange with competitive rates.
- Get unlimited business debit cards as an extension of your linked USD account.
- Track all of your other treasury wallets and external bank accounts, and label all transactions with semi-automated categorization tools.
- Connect to a treasury software (Quickbooks or Xero exports).
Interested in the future of wallet management? Try our crypto corporate account and web3 cards out here. You can open an account in less than ten minutes here and join 200+ leading companies using our product!