Blockstream has launched an institutional digital asset custody system developed with French technology group Thales. The system combines Thales hardware security modules (HSMs) with Blockstream’s Secure Multi-Party Computation (Secure-MPC) technology, according to the companies. Cointelegraph reported the launch on November 14, 2026, at 05:49 UTC+8.
Blockstream says the entire transaction-signing protocol runs inside the protected environment of Thales’ HSMs. That differs from MPC implementations that may carry out parts of signing outside dedicated security hardware. The companies say institutions can authorize transactions while keeping sensitive cryptographic operations within the HSMs.
Blockstream co-founder and CEO Adam Back told Cointelegraph that conventional MPC protocols can be too complex and require too much communication between devices to work well in fully offline cold storage. He argued that keeping signing devices offline reduces exposure to unauthorized network access. Back cited what he called the Binance $6.3 billion hack; according to the Binance investigation described in the report, attackers compromised employee devices and obtained credentials that gave them access to wallet-signing infrastructure.
Back also warned that AI could help attackers find subtle implementation errors in complex MPC systems. Those are his security arguments, not evidence that the newly launched system has been adopted more broadly or has eliminated custody risk.