Cold Wallet Soultion

​

Overview

In the cryptocurrency field, ensuring security is crucial. As the global acceptance and usage of cryptocurrencies continue to grow, the demand for reliable storage solutions is also increasing. Cold wallets (also known as offline wallets) have become a key strategy for protecting digital assets from online vulnerabilities. Custody offers enterprise-grade cold wallet asset custody solutions for its clients, utilizing Multi-Party Computation (MPC)-based cold wallet services to safeguard private keys. Combined with robust internal control policies, Custody provides comprehensive security for your cryptocurrency assets.

​

Introduction

​

Why Cold Wallets Are Necessary

Custody’s cold wallet feature offers clients a solution that separates cold and hot wallets, storing the majority of assets in a secure cold wallet while keeping only a small portion in a hot wallet for daily transactions. This way, even if the hot wallet is compromised, the potential loss is limited. This approach effectively balances security and efficiency. By understanding and implementing this strategy, exchanges can better protect user assets, enhance market trust, and maintain a competitive edge in the fast-paced cryptocurrency market.

Advantages

• Reduced Risk: The majority of assets are stored offline, minimizing the risk of theft by hackers.
• Efficient Transactions: The online nature of the hot wallet ensures real-time transaction processing.
• Flexibility: The asset ratio between cold and hot wallets can be dynamically adjusted based on transaction volume and strategy.

​

Solution Architecture

Custody employs a combination of smart contract programming, multi-signature authentication, and hardware wallets to ensure security while minimizing the learning curve for users. This approach allows for straightforward operations, enabling both cold storage of assets and automated fund management with ease.

​

Supported Network Range

ChainUp Custody’s cold wallet solution supports the following network-native tokens and related assets:

• Ethereum

• Binance Smart Chain

• TRON

• Huobi ECO Chain