DAO Treasury: Multisig, Custody, and Insurance Options Explained

Choosing how your DAO holds, deploys, and protects funds is a strategy decision with real operational and legal consequences. This guide breaks down concrete options—multisig smart accounts, qualified custody/MPC, and insurance—plus actionable configurations you can implement this quarter.

TL;DR for decision-makers

For public, auditable governance and granular permissions on EVM chains, a Safe-based (formerly Gnosis Safe) multisig with Zodiac modules (Roles, Delay, SafeSnap) remains the gold standard—and can be made faster and safer than you think. (safe.global)
If you need SOC- and bank-grade controls, regulatory comfort, or to support many chains, pair a qualified custodian (Anchorage Digital, Coinbase Custody, BitGo) with an MPC/TSS stack—then layer on-chain cover where applicable. Anchorage is currently the only crypto firm with a full national trust bank charter; broader OCC approvals are progressing. (occ.gov)
Treat “insurance” as a stack: traditional crime/specie policies for custodied assets, plus crypto-native options (Nexus Mutual, Sherlock) for smart-contract and slashing risks. (coinbase.com)
Idle treasury cash no longer needs to sit still: tokenized T-bill funds like BlackRock’s BUIDL are now multichain and accepted as collateral on major venues, enabling yield with operational flexibility. (prnewswire.com)

1) Multisig smart accounts: what “good” looks like in 2025

Multisig is no longer just “3-of-5.” On EVM chains, Safe{Wallet} is the de facto standard for DAO treasuries and programmatic spending because it’s modular, battle-tested, integrates with hundreds of apps, and supports advanced policy controls. A modern Safe setup usually includes:

Threshold signing for owners (e.g., 3/5 or 4/7). (safe.global)
Zodiac Roles Modifier to grant scoped, parameter-level permissions to non-owner operators (treasury managers, accounts payable, market makers). This lets you authorize “only up to X USDC per day to addresses on allowlist Y” without pinging owners for routine ops. (docs.roles.gnosisguild.org)
Zodiac Delay Modifier to add a timelock/cooldown to sensitive actions (e.g., changing signers, sweeping large balances)—giving stakeholders time to react if something’s off. (zodiac.wiki)
SafeSnap (Reality.eth) to execute off-chain Snapshot votes on-chain via your Safe after a bond and cooldown, closing the “governance says yes, multisig never executes” gap. (docs.snapshot.box)

Practical example (EVM):

Policy: 3/5 owners, Roles grants ops team a “payments” role capped at $50k/day per token to vendor allowlists; market-making wallet can call only approved DEX functions; any role-initiated config change routes through Delay with 24–48h cooldown.
Execution: Ops pays contributors daily within limits; large transfers and parameter changes trigger the delay window; owners keep high-friction control for emergencies and policy changes.

Why: You get speed (roles and limits for routine tasks) with guardrails (cooldowns; owner-only for critical moves). All actions are on-chain and auditable for tokenholders and finance.

Chain-specific notes

Solana: Squads is the leading multisig/smart account stack with granular roles, spending limits, DeFi integrations (Jupiter), and even fiat on/off-ramp workflows. It’s widely used by core Solana teams and is rolling out v5 with adaptive timelocks and formal verification improvements. (squads.xyz)
Bitcoin: Taproot-era Musig2 brings key aggregation so a multisig spend looks like a single signature (lower fees, better privacy). Ledger added Musig2 support in 2025; Bitcoin Core has advanced descriptor and wallet support for MuSig2-controlled outputs. For BTC treasuries, that means collaborative custody with fewer on-chain fingerprints and lower operational cost. (ledger.com)

Emerging AA (account abstraction) capabilities

Safe’s stack also embraces ERC‑4337 so you can mix traditional multisig with smart-account features (paymasters, sponsor fees, batched ops). That enables policy-rich flows without sacrificing the Safe architecture DAOs rely on. (theblock.co)

2) MPC and qualified custody: when to go “bank-grade”

Multisig is transparent and composable—but some organizations need regulatory-grade custody, service-level guarantees, and multi-jurisdictional coverage.

Qualified custodians:
- Anchorage Digital Bank, N.A. holds an OCC national trust bank charter (first granted in 2021), and as of December 2025 remains the only crypto firm operating with a full national trust bank charter. The OCC has conditionally approved more crypto national trust charters, indicating the regulatory path is widening. (occ.gov)
- Coinbase Custody and BitGo Trust are major U.S. trust custodians; both provide institutional controls (segregation, SOC audits) and “crime” insurance; Coinbase also emphasizes MPC in its stack and has open-sourced components. (coinbase.com)
MPC/TSS platforms (self- or co-managed): MPC splits key material across devices and servers, producing a standard single signature on-chain (great for chain coverage and privacy). Unlike on-chain multisig, policy lives off-chain and depends on process rigor, logging, and vendor reliability—so pick providers with robust attestations and technical transparency. (fireblocks.com)

Regulatory context you should know in the U.S.:

The SEC’s 2023 “Safeguarding” custody proposal for RIAs has not been finalized and is being re-examined in 2025; importantly, staff issued no-action relief allowing certain state‑chartered trust companies to be treated as “banks” (qualified custodians) for digital assets. Coordinate with counsel if you’re an RIA or manage client assets. (theblock.co)

When to prefer qualified custody/MPC over pure multisig:

You need third-party, regulated custody for policy or board comfort.
You operate across many chains and want uniform signing semantics.
You want insurance capacity the traditional market understands (crime/specie), with clearer claims handling. (coinbase.com)

Common hybrid pattern (what many mature DAOs and enterprises do):

Keep programmatic liquidity and grants in on-chain multisigs (Safe/Squads) with tight roles and timelocks.
Park strategic reserves and centralized exchange collateral with a custodian using MPC, with hot/warm/cold tiers and well-defined withdrawal SLAs.

3) Insurance stack: what’s actually insurable (and how)

Think in layers:

Traditional policies (via custodian or broker):
- Crime (platform-wide theft, insider collusion, certain cyber events) and Specie (physical loss/damage to keys) can apply to custodied assets; they do not cover DeFi contract failures. Terms and limits vary—Coinbase discloses crime coverage for hot/cold operations but emphasizes limits and exclusions; always read the policy. (coinbase.com)
Crypto-native cover:
- Nexus Mutual offers on-chain cover products for single/multi‑protocol risk and ETH slashing (with tokenized cover NFTs, adjustable terms). Teams can also buy “native protocol cover” to backstop users. (docs.nexusmutual.io)
- Sherlock couples competitive audits/contest processes with post‑deployment exploit coverage; coverage amounts scale with measured audit outcomes and paid premiums; claims flow and capacity caps are on-chain and documented. (docs.sherlock.xyz)
- Chainproof (Quantstamp) is a regulated smart-contract insurance initiative with reinsurance backing—relevant for institutions that need compliant, non-custodial cover. (quantstamp.com)
Staking/slashing cover (ETH): If you operate validators or use LSDs/LRTs, slashing insurance is now practical. Nexus Mutual’s ETH Slashing Cover (and umbrella variants) specifies deductibles, proof via validator lists and beacon data, and a documented claims process. For operational risk reduction, combine with DVT. (docs.nexusmutual.io)

Key takeaway: “Insurance” in crypto is surgical. Custodian policies typically won’t cover smart-contract bugs; on-chain cover won’t protect against your custodian’s insolvency. Most mature treasuries deploy both layers.

4) Practical configurations that work today

Below are ready-to-implement patterns 7Block Labs teams deploy for DAOs and enterprises. Adapt thresholds, limits, and custody split to your AUM and risk appetite.

A. EVM DAO with active grants and small trading book (e.g., $25–$75M)

Control: Safe 3/5 for treasury; separate Safe 2/5 for “petty cash” with Roles-limited permissions for ops.
Permissions:
- Roles allows ops to send up to $30k/day per token to pre-approved addresses; execute specific DEX functions with slippage caps; initiate payroll via a streaming app. (docs.roles.gnosisguild.org)
- Delay adds 24–48h cooldown to owner and config-changing actions. (zodiac.wiki)
Governance: SafeSnap ties Snapshot votes to on-chain execution with a Reality.eth bond and 24h cooldown. (docs.snapshot.box)
Insurance: Nexus Mutual Multi-Protocol or DeFi Pass cover sized to typical TVL exposure. If validators are operated, consider ETH Slashing Cover. (docs.nexusmutual.io)

Why this works: You avoid owner fatigue on routine ops, yet major changes are buffered by timelocks. Tokenholders can verify policies on-chain.

B. Multichain DeFi protocol treasury (e.g., $100–$400M) with compliance needs

Custody split:
- 50–70% strategic reserves with a qualified custodian (Anchorage/Coinbase/BitGo), MPC signing, cold/warm tiers. (occ.gov)
- 20–40% operational liquidity in Safe accounts across main EVMs; a Squads multisig for Solana programs/treasury. (safe.global)
Risk cover: Sherlock exploit coverage on audited core contracts; Nexus Mutual cover for deployed strategy integrations. (docs.sherlock.xyz)
Idle cash: Allocate to tokenized T-bills (e.g., BUIDL) to earn yield while keeping funds deployable as collateral on Deribit, Crypto.com—and, more recently, Binance via off‑exchange collateral programs. (prnewswire.com)

Why this works: You get bank-grade segregation and audit trails for bulk reserves, plus composable on-chain liquidity that’s covered for contract risks. Treasury cash earns yield and can fund collateral needs 24/7.

C. Bitcoin-heavy treasury (e.g., $50–$150M BTC)

Walleting: Migrate to Taproot Musig2 collaborative custody with hardware support (Ledger’s 2025 Musig2 app) to reduce fees/footprint and improve privacy; set policy via MPC or multisig-based coordinators. Track Core/descriptor support progress if using native software stacks. (ledger.com)
Playbook:
- Keep an “operational” UTXO set with a modest daily spend limit; cold vault governed by stricter quorum.
- Use time-locked recovery paths (Miniscript) for disaster recovery—now easier to express alongside Musig2.

5) Tokenized T‑bills: turning idle cash into flexible collateral

Why treasurers care in 2025: tokenized money market/T‑bill funds bring off‑chain yield into on-chain workflows—no “bank hours,” composable transfers, and now broadly accepted as collateral.

BlackRock’s BUIDL (tokenized by Securitize) launched in March 2024, expanded share classes across multiple chains (Aptos, Arbitrum, Avalanche, Optimism, Polygon) and then to Solana in March 2025. It surpassed $1B AUM in March 2025 and continued growing; exchanges now accept it as collateral. (prnewswire.com)
Franklin Templeton’s BENJI fund pioneered on-chain mutual fund record-keeping and added peer‑to‑peer transfers and USDC funding rails to streamline treasury ops. (franklintempleton.com)

Practical use: Park 20–40% of stable reserves in a tokenized T‑bill fund and rehypothecate as trading collateral when needed—reducing idle time without off‑ramping. Confirm investor eligibility, transfer restrictions, and chain support in your ops manual before deployment.

6) Incident-driven controls you should adopt (with specifics)

Even with great tooling, human and governance risks persist. 2024’s Munchables exploit showed how privileged deployers or upgraders can abuse authority; the funds were ultimately returned, but the design exposed a key lesson: permissions and change management need enforcement at the wallet layer, not just in team handbooks. (theblock.co)

Implement the following on your main treasury accounts:

Split authority by function: Owners approve governance/parameter changes; operators handle day-to-day payments via Roles with explicit function and parameter scopes, plus rate limits. (docs.roles.gnosisguild.org)
Add timelocks: A Zodiac Delay with 24–72h cooldown for config changes and large transfers creates a last‑line circuit breaker. (zodiac.wiki)
Use separate “risk domains”: a low-threshold Safe for recurrent payouts (capped, allowlisted) and a high-threshold Safe for reserves. If a hot wallet is compromised, your strategic assets are still behind higher quorum and timelocks. (docs.roles.gnosisguild.org)
Monitor modules and events: Alert on new module/guard enables, bond changes in SafeSnap, and failed permission checks; document emergency “advance nonce/skip” procedures for the Delay queue. (github.com)

For ETH staking treasuries: adopt Distributed Validator Technology (DVT) to mitigate downtime and key compromise correlated risks; DVT clusters split validator keys, require thresholds, and tolerate node failures—pair with slashing cover for financial protection. (obol.org)

7) Decision framework: which path fits your mandate?

Ask these four questions:

What must be public and verifiable on-chain?

If governance transparency is paramount, default to Safe/Squads with Roles + Delay + SafeSnap. (safe.global)

Do you need bank-grade segregation, reporting, and insurance capacity?

Use a qualified custodian for reserves, with MPC hot/warm access and clear SLAs; keep programmatic cash on-chain. (occ.gov)

What risks remain uninsured?

Map contract exposure to on-chain cover (Nexus/Sherlock) and staking exposure to slashing cover; confirm claim triggers and capacity. (docs.nexusmutual.io)

How can idle cash be more productive without creating operational drag?

Tokenized T‑bill funds like BUIDL/BENJI for yield + collateralization; verify investor eligibility and chain coverage. (prnewswire.com)

8) Implementation checklist (90 days)

Week 1–2: Risk mapping and policy
- Define owner quorum, operator roles, rate limits, and timelock scope.
- Choose custodian (if needed) and MPC policy (jurisdictional distribution, device controls).
Week 3–5: Wallet rollout
- Deploy Safe with Roles and Delay; configure SafeSnap with Reality.eth; set alerting on module/guard changes. (docs.snapshot.box)
- For Solana, set up a Squads multisig with spending limits and app integrations; train signers on approval flow. (squads.xyz)
- For BTC, begin Musig2 pilot for op wallet; document signing sessions and recovery procedures. (ledger.com)
Week 6–8: Insurance and cover
- Bind crime/specie coverage through custodian/broker; record exclusions. (coinbase.com)
- Purchase on-chain cover sized to protocol TVL exposure and validator count; test claims runbook. (docs.nexusmutual.io)
Week 9–12: Cash management & reporting
- Onboard to tokenized T‑bill fund(s); rehearse mint/redeem and collateral workflows with small amounts first. (prnewswire.com)
- Finalize reporting: owner dashboards for on-chain activity, custodian attestations, cover status, and idle‑cash yield.

9) Brief notes on costs and governance process

Custodian and infrastructure costs vary with AUM and SLAs; expect custody to be a material OPEX line at scale but offset by risk reduction and insurance access.
Document signer onboarding/offboarding, device hygiene (hardware wallets/YubiKeys), and simulated incident exercises (stolen key, malicious proposal, compromised app) every quarter.
Run “break glass” drills: can you pause high-risk modules, advance Delay nonce, and revoke roles under pressure within minutes?

10) The bottom line

The right treasury design is layered:

Safe/Squads for programmable, auditable on-chain control;
Qualified custodian + MPC for regulated reserves and exchange-facing operations;
Insurance stack spanning crime/specie and crypto-native covers;
Tokenized T-bills to keep cash productive without losing composability.

When you wire these layers together with roles, timelocks, and claims you’ve rehearsed—not just purchased—you convert treasury security from a blocker into a strategic advantage.

Sources and further reading

Safe{Wallet}, modular smart accounts and AA support. (safe.global)
Zodiac modules: Roles (granular permissions) and Delay (timelocks). (docs.roles.gnosisguild.org)
SafeSnap and Reality.eth for executing Snapshot votes on-chain. (docs.snapshot.box)
Squads multisig and Solana smart accounts. (squads.xyz)
Bitcoin Musig2 (Ledger support; Core/descriptor progress). (ledger.com)
OCC chartering: Anchorage Digital (national trust bank) and 2025 conditional approvals. (occ.gov)
Tokenized T‑bill funds: BlackRock BUIDL multichain and collateralization; Franklin BENJI features. (prnewswire.com)
Nexus Mutual cover products incl. ETH Slashing; Sherlock exploit coverage. (docs.nexusmutual.io)
Chainproof (regulated smart-contract insurance). (quantstamp.com)
Munchables exploit and lessons. (theblock.co)

If you’d like a bespoke treasury architecture or a controls audit, 7Block Labs can blueprint and deploy your full stack—policy, wallets, custody, coverage, and reporting—within 6–12 weeks.