Custodial Wallet Security Framework

Institutional-grade protection measures secure user funds while maintaining convenience required for everyday spending.

Multi-signature architecture forms the security foundation, requiring three of five cryptographically-protected signatures to authorize fund movements. Hardware security modules (HSMs) protect individual keys through tamper-resistant storage preventing unauthorized access even with physical compromise.

Cold storage integration isolates 90% of user funds from online systems while maintaining sufficient hot wallet liquidity for immediate transaction processing. Air-gapped systems with biometric access and 24/7 monitoring protect the majority of assets. Automated rebalancing transfers funds based on transaction patterns while maintaining security protocols.

Infrastructure security employs enterprise-grade cloud architecture with SOC 2 Type II compliance. DDoS protection prevents service disruption while network security includes firewall configurations, intrusion detection systems, and encrypted communications for all data transmission.

Access control implements zero-trust principles with multi-factor authentication for all access points. Data encryption protects user information through AES-256 standards at rest and TLS 1.3 for data in transit. Regular third-party security audits and penetration testing validate system defenses against sophisticated attack vectors.