Crypto platform Uphold has introduced an inheritance-planning feature for selected cryptocurrency holdings, allowing users of its Vault assisted self-custody wallet to designate a beneficiary for their Bitcoin, XRP and Hedera (HBAR) assets.
The feature, called Vault Inheritance, was announced by Uphold on September 29. It is designed to address one of the longstanding challenges associated with cryptocurrency ownership: ensuring that digital assets can be transferred to heirs when the original holder dies.
According to the report, the company estimates that almost 4 million Bitcoin are stranded in wallets whose owners have died or lost access to their private keys. The holdings are estimated to be worth around $331 billion.
Why crypto inheritance remains a challenge
Unlike conventional bank accounts or brokerage accounts, cryptocurrency held in a self-custody wallet generally depends on private cryptographic keys for access. If those keys are lost or cannot be passed to an heir, legal ownership of the assets does not automatically provide the technical ability to transfer them.
Uphold’s new feature attempts to address this issue by allowing a Vault customer to nominate a beneficiary while the account holder is alive. The beneficiary does not receive access to the cryptocurrency during the owner’s lifetime.
The company said the arrangement is intended to provide a structured process through which assets can eventually be transferred without requiring the beneficiary to possess the owner’s private keys in advance.
How Uphold Vault Inheritance works
Customers can invite a beneficiary directly through the Vault dashboard. The nominated person is notified and guided through the process of creating an Uphold account where the assets can eventually be received.
The beneficiary does not obtain access to the owner’s cryptocurrency simply by being nominated. Uphold said the designation can also be changed by the customer.
After the owner’s death, the company’s compliance team verifies the required legal documentation before transferring control of the designated assets to the beneficiary’s Uphold wallet.
The process is designed so that the beneficiary does not need to have prior cryptocurrency expertise. This could make the feature particularly relevant for investors who hold digital assets as part of their longer-term financial planning but whose family members may not be familiar with crypto wallets and private keys.
Vault launched in 2023
Uphold’s Vault wallet was launched in December 2023. The service combines self-custody features with mechanisms for key replacement and access to trading through the platform.
The inheritance facility builds another layer around that system by introducing an estate-planning mechanism for selected digital assets.
The move comes as cryptocurrency increasingly becomes a long-term investment for some users, rather than an asset class held solely for short-term trading. This has created additional demand for mechanisms that can address what happens to crypto holdings when an investor dies or becomes unable to manage the assets.
Monthly fee announced for the service
Vault Inheritance is priced at $19.99 per month, according to the report.
Existing Vault customers will see the new plan reflected after December 31, 2026. Uphold is also offering users in the United States a free 30-day trial of the service.
Uphold President of Consumer Nancy Beaton said cryptocurrency has become part of how people build their financial future, while pointing to the limited number of secure ways to pass digital assets to beneficiaries.
Crypto firms focus on inheritance planning
Uphold’s move comes amid growing interest among crypto wallet providers in solving the inheritance problem associated with self-custody.
The report noted that Kresus launched its own cryptocurrency inheritance service for self-custody users in July. Such services are aimed at reducing the possibility that cryptocurrency becomes permanently inaccessible when the owner dies without leaving an effective method for heirs to recover or control the assets.
The issue is particularly significant for self-custody users because traditional financial institutions typically have established procedures for transferring bank deposits, securities and other assets after a customer’s death. Cryptocurrency wallets, by contrast, can depend heavily on private keys, seed phrases and other forms of cryptographic control.
What the new feature means for crypto holders
Uphold’s Vault Inheritance does not eliminate the need for estate planning, but it provides customers with a dedicated mechanism for naming a beneficiary and establishing a process for transferring selected digital assets.
The feature currently covers Bitcoin, XRP and Hedera holdings, according to the report. The beneficiary is not given access while the original owner is alive, while Uphold’s compliance process is intended to verify the legal basis for the eventual transfer.
As more investors hold cryptocurrency for longer periods, inheritance and succession planning could become a more prominent part of the digital-asset industry. The emergence of dedicated services from wallet providers indicates that the sector is increasingly addressing issues that extend beyond trading and price movements.
For crypto investors, the development also highlights the importance of considering what happens to digital assets after the owner’s lifetime and ensuring that any inheritance arrangements are consistent with applicable legal and estate-planning requirements.