Custody Security Architecture: Multi-Sig, HSMs, and Defense in Depth
A detailed examination of enterprise-grade custody solutions: key management, multi-signature requirements, and layered security.
Defense in Depth
No single security control is sufficient for custodying significant digital assets. Defense in depth layers multiple independent controls so that breach of any single layer does not compromise assets. The security stack includes: physical security, network isolation, access controls, multi-party computation, and monitoring/alerting.
- Physical: HSMs in geographically distributed, secure facilities
- Network: Air-gapped signing infrastructure, no internet exposure
- Access: Role-based access with separation of duties
- Cryptographic: Multi-signature with distributed key management
- Operational: Dual control procedures, time-locked transactions
Multi-Signature Architecture
GRAIN treasury wallets use 3-of-5 multi-signature configuration. Five key holders in different geographic locations must provide three signatures for any transaction. This prevents single points of failure (compromised individual, lost key) while remaining operationally practical.
Insurance Coverage
GRAIN maintains comprehensive crime insurance covering theft, fraud, and employee dishonesty. Coverage limits are calibrated to custody amounts and reviewed quarterly. Policy details available under NDA for enterprise customers.
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