Crypto asset custody infrastructure, MPC-based wallets, and secure key management.
We build hardware (cold) and software (hot) wallet bridges for your individual or institutional crypto custody needs. Protect your assets with wallet architectures supported by HSM and MPC technologies, featuring multi-signature (multisig) approval mechanisms.
Multi-Party Computation (MPC) is the most secure wallet technology that splits the private key into fragments to prevent it from being stored in a single location.
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ContactEnterprise-grade hardware security and cryptographic key ceremony processes.
A Hardware Security Module (HSM) is a dedicated cryptographic processor designed to protect the entire lifecycle of cryptographic keys. Unlike software-based key storage, HSMs provide tamper-resistant physical security, meaning any attempt to breach the device triggers automatic key destruction. For institutional cryptocurrency custody, HSMs form the backbone of a secure key management infrastructure. They execute cryptographic operations including signing, encryption, and key generation entirely within the protected boundary, ensuring private keys never exist in plaintext outside the device. io40 integrates HSM solutions from leading vendors including Thales Luna, Utimaco, and nCipher, all of which meet the rigorous FIPS 140-2 Level 3 standard — the gold standard for financial institution key management. This certification ensures that HSMs have been independently validated for both physical and logical security controls, providing regulators, auditors, and counterparties with verifiable assurance.
A key ceremony is a formal, audited process for generating master cryptographic keys in a controlled environment. io40 designs and executes key ceremonies with strict procedural controls: multiple independent custodians, air-gapped HSM devices, physical access logs, and video documentation. The ceremony ensures no single person ever possesses the full key — a critical control for both internal fraud prevention and regulatory compliance. Multi-signature (multi-sig) wallet architectures extend this principle operationally. By requiring M-of-N signatures before any transaction is authorized, multi-sig eliminates single points of failure across both hot and cold wallet operations. io40 designs multi-sig policies tailored to your organizational risk appetite: from 2-of-3 setups for operational agility to 5-of-9 configurations for maximum institutional security. Combined with HSM-backed signing, these architectures deliver custody infrastructure that meets the expectations of institutional investors, regulators, and insurance underwriters alike.
Threshold signature schemes and seedless recovery for next-generation custody.
Multi-Party Computation (MPC) is a cryptographic paradigm that allows multiple parties to jointly compute a function over their inputs while keeping those inputs completely private. In the context of digital asset custody, MPC enables the creation and use of cryptographic signing keys that are never assembled in a single location — not even for a moment. Traditional wallet architectures require a complete private key to exist somewhere, even if only briefly during a signing operation. MPC eliminates this vulnerability by distributing the key generation and signing process across multiple independent nodes. Each node holds a key share — a mathematical fragment that has no value on its own. Only when enough nodes collaborate (threshold) does a valid signature emerge, without any node ever seeing the complete key. This architecture is fundamentally different from multi-sig: with MPC, the blockchain sees only a single standard signature, meaning there is no on-chain footprint of the multi-party arrangement and no smart contract dependencies that could introduce additional attack surfaces. io40 implements MPC using proven frameworks including Fireblocks MPC-CMP, Unbound CORE, and ZenGo X protocols.
Threshold Signature Scheme (TSS) is the cryptographic foundation that makes MPC wallets practical at institutional scale. Under TSS, a signing key is mathematically split into shares distributed across geographically and organizationally separate nodes. A configurable threshold — for example, 3 of 5 nodes — must participate in a secure multi-round protocol to produce a valid signature. This provides institutional-grade resilience: even if one or two nodes are compromised, breached, or temporarily unavailable, the system continues to operate securely. Key sharding takes this further by enabling dynamic key resharing without ever reconstructing the original key. io40 architects TSS deployments with geographic distribution across multiple cloud providers and on-premises infrastructure, ensuring that no single jurisdiction, provider outage, or physical event can compromise custody operations. Seedless recovery is another critical advantage: unlike BIP-39 seed phrase backups that create a single-point-of-failure recovery vector, TSS-based systems recover through secure key refreshing protocols that maintain the threshold property throughout the recovery process. This eliminates the seed phrase as an attack surface — a major advance for institutional security posture.
SOC 2 Type II, ISO 27001, and insurance-backed custody compliance.
SOC 2 Type II is the most rigorous independent audit framework for technology service providers handling sensitive financial and personal data. Unlike a point-in-time assessment, SOC 2 Type II evaluates controls over an extended observation period — typically 6 to 12 months — verifying that security, availability, processing integrity, confidentiality, and privacy controls operate consistently and effectively. For crypto custody providers, SOC 2 Type II certification is increasingly required by institutional clients, exchanges, and regulators as a baseline trust requirement. io40 assists custody platform operators in designing and implementing the technical and procedural controls needed to achieve SOC 2 Type II attestation, including access control policies, change management procedures, incident response programs, and continuous monitoring infrastructure.
ISO/IEC 27001 is the internationally recognized standard for Information Security Management Systems (ISMS). Certification demonstrates that an organization has systematically assessed information security risks and implemented a comprehensive set of controls to address them. For digital asset custody operations, ISO 27001 certification provides a globally recognized assurance framework that is accepted across all major markets — including the European Union, where it aligns with requirements under DORA (Digital Operational Resilience Act) and MiCA. io40 provides end-to-end ISO 27001 implementation services, from initial gap assessment and risk register construction through control implementation, internal audit preparation, and external certification body engagement. Our team has supported multiple fintech and custody operators through successful first-time ISO 27001 certification.
Institutional-grade custody insurance covers digital assets held in both hot and cold storage against risks including theft, employee dishonesty, and loss due to key management failures. Qualifying for comprehensive crypto custody insurance requires demonstrating robust technical controls — HSM usage, MPC key management, geographic distribution, access controls, and independent audits. io40 prepares custody operators for insurance underwriting processes, helping clients document their security architecture in the formats required by Lloyd's of London syndicates and specialist crypto insurers such as Aon, Marsh, and Evertas. Cold storage best practices implemented by io40 include geographically distributed vault storage with physical access controls, 24/7 environmental monitoring, multi-custodian access policies requiring in-person attendance of multiple authorized signatories, and regular proof-of-reserves exercises to verify asset integrity without exposing key material.