Onramp vs Sparrow Wallet — Head-to-Head Custody Comparison

An independent, data-driven comparison of Onramp and Sparrow Wallet across security, insurance, fees, regulatory compliance, and more.

Verdict

Quick Verdict

Onramp scores 8.7 vs Sparrow Wallet's 5.4. Onramp leads in 6 of 8 categories.

Onramp is better suited for Family offices, RIAs, HNW individuals. Sparrow Wallet is better suited for Privacy advocates, Full node operators, Advanced Bitcoin users.

8.7

Very GoodCustody Score

Onramp

5.4

Below AverageCustody Score

Sparrow Wallet

Scores

Score Comparison

Weighted scores across all 8 custody criteria.

Criterion	Weight	Onramp	Sparrow Wallet	Winner
Security	20%	9.5	7.5	Onramp
Insurance	15%	9.0	1.0	Onramp
Regulatory	15%	8.5	1.0	Onramp
Fee Transparency	10%	7.5	10.0	Sparrow Wallet
Track Record	15%	8.0	6.5	Onramp
Withdrawal Flexibility	10%	8.5	9.5	Sparrow Wallet
Reporting & Audit	10%	8.5	2.0	Onramp
Counterparty Diversification	5%	10.0	9.0	Onramp
Overall Score	100%	8.7	5.4	Onramp

Visual

Score Radar

Visual overlay of Onramp and Sparrow Wallet across all categories.

OnrampSparrow Wallet

Deep Dive

Category-by-Category Analysis

A deeper look at how each provider performs in every scoring criterion.

Security (9.5 vs 7.5)

Onramp uses Multi-institution distributed key management with Varies by underlying custodian in cold storage and regular penetration testing. Compliance: Via underlying custodians (SOC 1 & SOC 2). Incident history: No incidents.

Sparrow Wallet uses Desktop wallet with hardware wallet support key management with 100% (when used with hardware wallet) in cold storage and no confirmed penetration testing. Compliance: N/A. Incident history: No incidents.

Insurance (9.0 vs 1.0)

Onramp offers Aggregate coverage across multiple custodian insurance policies via Multiple (via underlying custodians). Each underlying custodian maintains their own insurance. Combined coverage exceeds single-custodian limits.

Sparrow Wallet offers None — self-custody software via N/A. Software wallet. No insurance. Full user responsibility.

Regulatory (8.5 vs 1.0)

Onramp holds State money transmitter licenses and is a qualified custodian operating in United States. Regulated through underlying custodian partnerships with qualified custodians

Sparrow Wallet holds N/A — open-source software and is not a qualified custodian operating in Decentralized. Open-source project. No company registration needed.

Fee Transparency (7.5 vs 10.0)

Onramp charges Contact for pricing in annual custody fees with 0.50% per trade (brokerage) per transaction. Also offers Onramp Finance: lowest-cost Bitcoin brokerage at 50bps, 5% APY on cash, 1.5% cashback card

Sparrow Wallet charges None in annual custody fees with Network fees only per transaction. Completely free and open-source. No account needed.

Track Record (8.0 vs 6.5)

Onramp was founded in 2021 and is headquartered in Austin, TX. AUM: $1B+. Incident history: No incidents.

Sparrow Wallet was founded in 2020 and is headquartered in Open Source. AUM: N/A (software wallet). Incident history: No incidents.

Withdrawal Flexibility (8.5 vs 9.5)

Onramp withdrawal fees: Contact for pricing. Minimum account: $100,000. Supported assets: Bitcoin.

Sparrow Wallet withdrawal fees: Network fees only. Minimum account: No minimum. Supported assets: Bitcoin.

Reporting & Audit (8.5 vs 2.0)

Onramp: SOC compliance is Via underlying custodians (SOC 1 & SOC 2). As a qualified custodian, it meets SEC reporting requirements.

Sparrow Wallet: SOC compliance is N/A. Not classified as a qualified custodian.

Counterparty Diversification (10.0 vs 9.0)

Onramp is a multi-institution custody provider. Key management: Multi-institution distributed custody — keys and assets spread across multiple independent regulated custodians (BitGo, Coinbase, Fidelity, etc.).

Sparrow Wallet is a self-custody / multisig provider. Key management: Desktop wallet with hardware wallet integration. Full node connection. PSBT support..

Fees

Fee Comparison

Side-by-side fee breakdown for Onramp and Sparrow Wallet.

Fee Type	Onramp	Sparrow Wallet
Setup Fee	Contact for pricing	Free (open-source)
Annual Custody	Contact for pricing	None
Transaction	0.50% per trade (brokerage)	Network fees only
Withdrawal	Contact for pricing	Network fees only

Onramp: Also offers Onramp Finance: lowest-cost Bitcoin brokerage at 50bps, 5% APY on cash, 1.5% cashback card

Sparrow Wallet: Completely free and open-source. No account needed.

Features

Feature Comparison

Checklist of features across both providers.

Feature	Onramp	Sparrow Wallet
1.5% cashback card	✓	✗
5% APY on cash balances	✓	✗
Bitcoin brokerage services (Onramp Finance)	✓	✗
Coin control	✗	✓
Full node connection	✗	✓
Hardware wallet integration	✗	✓
Institutional-grade security and compliance	✓	✗
Multi-Institution Custody across multiple regulated custodians	✓	✗
Multisig support	✗	✓
No single point of failure	✓	✗
PSBT support	✗	✓
Whirlpool privacy	✗	✓
White-glove onboarding for institutions	✓	✗

Recommendation

Who Should Choose Which?

Onramp is better if you…

✓Are a family offices
✓Are a rias
✓Are a hnw individuals
✓Are a institutions
✓Want: Only provider offering true multi-institution custody — no single point of failure
✓Want: Aggregated insurance coverage exceeds any single custodian
✓Want: $1B+ in assets under custody demonstrates institutional trust

Sparrow Wallet is better if you…

✓Are a privacy advocates
✓Are a full node operators
✓Are a advanced bitcoin users
✓Are a multi-sig users
✓Want: Best Bitcoin desktop wallet UX
✓Want: Full node connection for verification
✓Want: Advanced privacy tools (Whirlpool)

FAQ

Frequently Asked Questions

Is Onramp or Sparrow Wallet better for Bitcoin custody?

Onramp scores 8.7 vs 5.4 in our weighted Custody Score. Onramp leads in 6 of 8 scoring categories. However, the best choice depends on your specific needs: Onramp is best for Family offices and RIAs, while Sparrow Wallet suits Privacy advocates and Full node operators.

What is the difference between Onramp and Sparrow Wallet?

Onramp is a multi-institution custody provider, while Sparrow Wallet is a self-custody / multisig provider. Onramp excels in Counterparty Diversification, whereas Sparrow Wallet is strongest in Fee Transparency.

How do Onramp and Sparrow Wallet fees compare?

Onramp charges Contact for pricing annual custody fees with 0.50% per trade (brokerage) transaction fees. Sparrow Wallet charges None annual custody fees with Network fees only transaction fees.

Which is more secure, Onramp or Sparrow Wallet?

Onramp scores 9.5/10 for security while Sparrow Wallet scores 7.5/10. Onramp uses Multi-institution distributed key management, and Sparrow Wallet uses Desktop wallet with hardware wallet support.