Blockstream announced on November 13, 2026, the launch of a new institutional digital-asset custody solution developed in collaboration with Thales. The system integrates Thales hardware security modules with Blockstream’s Secure Multi-Party Computation technology to support offline cold storage of Bitcoin and other digital assets.

The architecture executes the entire cryptographic signing protocol inside the protected environment of the Thales modules. Conventional multi-party computation approaches often carry out portions of the signing process on general-purpose systems outside dedicated hardware, creating additional exposure points.

Hardware-Backed Signing and Reduced Attack Surface

The solution is delivered through Blockstream Enterprise, the company’s institutional platform for deploying and managing Bitcoin-based financial infrastructure. It combines hardware-level key protection with distributed signing authority so that multiple parties can authorize transactions without reconstructing the underlying private key.

Blockstream also incorporates its FROST threshold signing protocol, which enables authorized participants to produce a signature jointly while keeping sensitive material confined to the secure hardware environment throughout the transaction lifecycle.

Company executives stated that the design addresses risks associated with internet-connected custody systems. Adam Back, Blockstream co-founder and chief executive, pointed to past incidents in which attackers compromised employee devices and obtained credentials that allowed access to wallet-signing infrastructure.

Back argued that complex interactive protocols are difficult to secure in a fully offline setting and that advances in artificial intelligence could assist attackers in locating subtle implementation flaws.

Institutional Focus and Collaboration Details

Michael Minkevich, president and chief operating officer of Blockstream, said the partnership builds on a two-year relationship between the companies and aims to supply institutions with reliable infrastructure as they incorporate Bitcoin into existing operations.

Jeff Boortz, chief product officer, noted that relocating multi-party computation execution inside the hardware modules targets critical security risks while retaining practical signing capabilities used by organizations that manage digital assets.

The offering arrives amid ongoing industry attention to large-scale digital-asset thefts and the potential for more sophisticated remote attacks. Blockstream and Thales present the system as a means for institutions to limit exposure by keeping signing devices offline and confining sensitive operations to certified hardware.

The companies position the solution as institutional-grade infrastructure that supports secure custody operations and integration with existing financial systems while prioritizing offline operation.