Blockstream Launches New Institutional Bitcoin Custody Solution

Blockstream, a Bitcoin infrastructure company founded by Adam Back, has unveiled a new institutional digital asset custody solution in partnership with French technology group Thales (1). The solution combines Thales’ hardware security modules (HSMs) with Blockstream’s Secure Multi-Party Computation (Secure-MPC) technology, allowing institutions to authorize transactions while keeping sensitive cryptographic operations within dedicated security hardware (1). This approach ensures that the entire signing protocol is executed within the protected environment of Thales’ HSMs, unlike conventional MPC implementations that may perform parts of the signing process outside of such secure hardware (1). [1]

Blockstream co-founder and CEO Adam Back emphasized that conventional MPC protocols are often too complex and require too much communication between devices to be practical for fully offline cold storage (1). He cited the Binance $6.3 billion hack as an example of the risks associated with internet-connected custody infrastructure, arguing that keeping signing devices offline can help prevent unauthorized access (1). According to Binance’s investigation, attackers compromised employee devices and obtained credentials that allowed them to access the exchange’s wallet-signing infrastructure (1). [1]

Back also highlighted the potential for AI to complicate existing security challenges by helping attackers discover subtle flaws in complex MPC implementations (1). He noted that AI could assist attackers in identifying small implementation errors that may not be obvious (1). When asked about the broader custody industry adopting similar offline security models, Back expressed hope that institutions would move assets into cold storage to reduce exposure to potential AI-assisted attacks (1). [1]

Blockstream, a Bitcoin infrastructure company founded by Adam Back, has unveiled a new institutional digital asset custody solution in partnership with French technology group Thales (1). The solution combines Thales’ hardware security modules (HSMs) with Blockstream’s Secure Multi-Party Computation (Secure-MPC) technology, allowing institutions to authorize transactions while keeping sensitive cryptographic operations within dedicated security hardware (1). [1]

Blockstream co-founder and CEO Adam Back emphasized that conventional MPC protocols are often too complex and require too much communication between devices to be practical for fully offline cold storage (1). He pointed to the Binance $6.3 billion hack as an example of the risks facing internet-connected custody infrastructure, arguing that keeping signing devices offline can help prevent unauthorized access (1). [1]

According to Binance’s investigation, attackers compromised employee devices and obtained credentials that allowed them to access the exchange’s wallet-signing infrastructure (1). If you connect equipment to the internet, even if it’s via firewalls and so on, there is risk that you can get unauthorized access. You can get hackers into the network, get hackers with access to logins they shouldn’t have and so on (1). [1]

Blockstream, a Bitcoin infrastructure company founded by Adam Back, has unveiled a new institutional digital asset custody solution in partnership with French technology group Thales (1). The solution combines Thales’ hardware security modules (HSMs) with Blockstream’s Secure Multi-Party Computation (Secure-MPC) technology, allowing institutions to authorize transactions while keeping sensitive cryptographic operations within dedicated security hardware (1). [1]

Blockstream co-founder and CEO Adam Back emphasized that conventional MPC protocols are often too complex and require too much communication between devices to be practical for fully offline cold storage (1). He noted that these protocols are difficult to secure and are very interactive, which makes them unsuitable for cold storage environments (1). [1]

Back highlighted the Binance $6.3 billion hack as an example of the risks associated with internet-connected custody infrastructure (1). He argued that keeping signing devices offline can help prevent unauthorized access, as connecting equipment to the internet, even with firewalls, introduces risks such as hackers gaining access to logins they shouldn’t have (1). [1]

Back also mentioned that AI could make existing security challenges more difficult to manage by helping attackers discover subtle flaws in complex MPC implementations (1). He suggested that institutions should adapt to the environment by moving assets into cold storage to reduce exposure to potential AI-assisted attacks (1). [1]

Sources

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Prepared with AI assistance from the cited sources.