Blockchain infrastructure for custody providers
One compromised key and customer funds vanish permanently. Regulators, insurers, and clients all demand proof that your architecture prevents that outcome. The solution includes the wallet infrastructure and operational controls that satisfy every party at the table.
We solve the problems that make insurance underwriters walk away from the table.
Security without slowing operations
Your hot wallet balance is the answer to a brutal question. How much can you afford to lose in a single incident? Cold storage protects assets but leaves clients waiting hours for withdrawals. Hot wallets serve clients instantly but sit exposed to every attack vector in production. Most custody operators toggle between these extremes and hope the balance they picked today still makes sense tomorrow.
The solution includes tiered wallet architectures where hot, warm, and cold layers rebalance automatically against configurable exposure thresholds. Funds sweep from cold to warm to hot as withdrawal demand rises and fall back to deeper storage when operational volume drops. Each tier enforces its own signing policy, rate limits, and allowlisted destinations. The hot wallet never holds more than the operator has explicitly chosen to risk, and that number adjusts in real time rather than sitting in a spreadsheet.
Key management that prevents single points of failure
MPC eliminates the single private key as a point of failure, but it introduces operational complexity that most teams underestimate. Key generation ceremonies need witnesses and tamper evident logging. Shard holders leave the company and their shares need resharing without reconstructing the original secret. Backup procedures must survive the scenario where two data centers go offline simultaneously. The cryptography is the easy part. The human procedures around it are where custody operations actually break.
The architecture integrates MPC signing infrastructure with documented ceremony procedures, shard rotation playbooks, and disaster recovery plans that auditors and insurance underwriters accept as evidence of control. No single person or device can authorize a withdrawal above the policy threshold. Key generation produces verifiable audit records. When personnel change, resharing rotates their shard out of the signing group without service interruption and without ever exposing the underlying secret material in cleartext.
Monitoring that catches problems before they become losses
On chain transactions settle in seconds and reverse never. Withdrawal rate limiting and anomaly detection are the last line of defense after every other control has failed. Most custody platforms generate reports that tell the compliance team what happened yesterday. By the time anyone reads the report, the funds have already moved through three mixers and two bridges.
The solution includes withdrawal monitoring that evaluates every outbound transaction against velocity rules, destination allowlists, and behavioral baselines before the transaction broadcasts. Anomalous patterns trigger automated holds that require manual release from a second authorized party. Every wallet action produces a tamper evident audit log with signer identity, approval chain, and policy evaluation results. Alerts propagate to your security team with the full decision context so they act on evidence instead of spending the first hour reconstructing what happened.
A regulated custodian needed to pass an insurance underwriting review while migrating away from a single signing setup.
The custodian holds client assets across one hot wallet controlled by two cofounders sharing a hardware device. Their insurance application stalled because the underwriter flagged the lack of key segregation, the absence of documented ceremony procedures, and no withdrawal anomaly detection. The custodian also faces a US qualified custodian assessment in four months. They need to overhaul the architecture without freezing client withdrawals during the transition and without the key migration itself becoming a security event.
The approach includes a three tier wallet system where cold vaults hold the reserve, warm wallets carry a rolling operational float, and hot wallets are sized to peak hourly withdrawal volume with an automatic ceiling. MPC signing with a 3 of 5 shard policy replaces the shared hardware device, and a formal key ceremony with witnessed generation and encrypted shard distribution produces the audit artifacts the underwriter requires. Withdrawal monitoring enforces per address velocity limits and flags first time destinations for manual approval. The migration runs wallet by wallet over three phases so client operations never pause and the old signing keys are provably destroyed at each stage.
- Architecture
- Three tier with auto ceiling
- Signing
- MPC 3 of 5 shard policy
- Compliance
- Insurance and QC ready
- Migration
- Phased with provable key destruction
Production infrastructure, not security theater.
Solutions built for environments where failure means total loss.
Tell us about your custody requirements.
Describe the assets, the scale, and the regulatory environment. That is enough for us to say whether we can help.