The Big Data Blog

Crypto asset custody environments rely on absolute control over how information enters and leaves systems that secure private keys. In this context, the most crucial design choice for crypto asset custody security an organization can make is enforcing one-way data flow . Unidirectional communication channels, supported by dedicated data diode technology , prevent any form of inbound connectivity while still enabling essential operational processes. For custodians, exchanges,

Crypto asset service providers rely on the ability to transfer digital assets efficiently between hot environments and cold storage environments. As threat actors increasingly target exchanges and custodians, the design of transfer workflows has become one of the most crucial aspects of crypto asset storage security .   Hot systems are crucial for client withdrawals, liquidity management, and exchange operations. Cold systems safeguard long-term reserves, private keys, and h

In crypto asset custody , most institutions know how to secure assets at rest. They invest in robust storage environments, use air-gapped cold wallets , and apply multi-layered controls around private keys. However, as experience shows, the greatest cyber risks often occur not when crypto assets are storage, but when they move.   Every transfer of crypto assets, whether it’s between a cold wallet and a hot wallet or across a crypto asset service provider’s internal network, c

In the world of digital finance, trust is everything. Yet, in crypto asset custody , trust is not built solely on perception or reputation; it is built on verifiable security . Every cold wallet, every crypto asset storage facility, and every transaction channel represents a potential breach point in a system that must, by design, remain uncompromised. To achieve that, crypto asset service providers must architect their custody systems around a single, non-negotiable principl

We conducted a jurisdiction-by-jurisdiction review of the legal texts (and, in the U.S., formal statements) to determine their specific provisions regarding cold-wallet security and adjacent controls.

While cold wallets are inherently more secure than their internet-connected counterparts, they are not immune to cyber risks.