Blockdaemon Blog

The Ultimate Web3 Key Management for Crypto Exchanges

Nov 13, 2023
By:
Frank
Wiener
&
We look at how Builder Vault can offer custom custody solutions, and non-custodial Wallet-as-a-Service (WaaS), for your exchange. 

Blockdaemon's Builder Vault offers tailored services in treasury management, compliant custody solutions, and non-custodial Wallet-as-a-Service (WaaS). 

Book a call today, or read on to see how Builder Vault's features seamlessly intersect with your exchange’s requirements. 

How Builder Vault Can Support Exchanges

Builder Vault provides a robust key management solution tailored to the operational realities of crypto exchanges. The platform supports all wallet types—hot, warm, and cold—addressing the full spectrum of your liquidity and security needs. Here's how:

  • Treasury Wallets: Liquidity management is crucial for crypto exchanges. Builder Vault's Threshold Security Modules (TSM) enable real-time adjustments for your treasury operations. This ensures agility in handling market shifts and immediate liquidity requirements across your cold, warm, and hot wallets.
  • Custody Wallets: Crypto exchanges must manage the intricacies of regulatory requirements with the demand for rock-solid security. Builder Vault enables you to offer custody solutions that are not just secure but also in strict compliance with local regulations. These include: 
  • Regulated Custody: Host keys for your clients in compliance with stringent regulatory norms.
  • Self-Custody: Give clients full control over key shares, lowering your operational risk.
  • Third-Party Custody: Allow institutional clients to appoint third-party custodians for added security.
  • Non-Custodial Wallets

For traders who prioritize privacy and autonomy, the traditional Wallet-as-a-Service model falls short. Builder Vault's non-custodial wallet can shift key management to users, diminishing your regulatory burdens while offering a compelling feature for privacy-focused clients.

In summary, Builder Vault provides a spectrum of wallet solutions specifically engineered for crypto exchanges. From liquidity optimization to risk mitigation and trader autonomy, it covers every base. 

Threshold Cryptography

Builder Vault’s Threshold Cryptography serves as a secure foundation for your exchange operations. 

  • Dynamic TSM Clusters: Scaling Made Easy

Builder Vault’s dynamic TSM clusters scale to accommodate growing customer bases, while offering the flexibility to support various approval models across different types of wallets. Whether you require 2 of 2 approvals for hot wallets, 3 of 4 for warm wallets, or even 5 of 5 with air-gapped approvals for cold storage, Builder Vault accommodates your unique configurations, allowing you to customize security levels as you see fit.

  • Advanced Mobile Node Hosting

Builder Vault revolutionizes mobile key management, breaking free from traditional MPC model limitations that restrict you to one mobile device per key security module. With Builder Vault, you can include multiple mobile devices within the same wallet. This even enables hosting all key shares exclusively on mobile, offering an innovative approach to custody models.

Additionally, Builder Vault facilitates collaborative financial management by allowing wallet clients to invite third parties to create shared wallets, ushering in a new era of financial product innovation for exchanges. 

  • Social Key Recovery

Builder Vault enables the secure export of encrypted key shares to trusted third parties. This feature not only bolsters resilience against key loss but also paves the way for innovative social recovery services. By extending invitations and establishing connections with reliable individuals, you can enhance the level of security and efficiency within your approach to managing keys.

Why Exchanges Choose Builder Vault

  • Dynamic: Achieve any-to-any connectivity for maximum market coverage.
  • Customizable: Adjust hosting and key share options to suit your business model.
  • Performance: Experience up to near-zero latencies and handle up to 12,000 operations per second, depending on your TSM configuration.
  • Patented Advanced MPC™: Developed by our world-class cryptographers.
  • Self-Hosting Capabilities: Maintain complete control with the option to self-host your operations, enhancing security and autonomy.

Trusted & Audited

Builder Vault has undergone rigorous third-party audits, including evaluations by the NCC Group. Major financial institutions globally have licensed our TSM technology, testifying to its robustness and security.

Builder Vault is a Future-Proof Choice for Exchanges

Interested in a tailored solution for your exchange? Contact us for a personalized assessment.

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