Our recent webinar, “How to choose the right MPC solution for your digital asset custody strategy,” led to a number of questions from listeners on how to choose the best tools to safe guard digital assets, while still being able to fully access the broader blockchain ecosystem. To ensure you don’t miss out, we’ve created this quick read that covers all your questions in detail. Q: Are there specific certifications or industry standards that an ideal MPC provider should meet to ensure compliance and trustworthiness? Yes, certifications like SOC 2 Type 2 are critical, as they validate that providers follow stringent global standards in development, security, and operations. Reputable providers also conduct independent penetration tests, including black-box and white-box testing, to ensure the resilience of their solutions. Importantly, any trustworthy MPC provider must guarantee that only the client, and not the provider, can approve transactions, by ensuring no single shard enables unauthorized access. Q: What do you think about HSM custody as an alternative to MPC solutions? An HSM, or hardware security module, is a physical computing device that safeguards private keys. HSM-based custody solutions are often perceived as cold storage due to their isolation and physical security measures. Nevertheless, an HSM still connects to the internet to create and execute transactions, just like an MPC. When securing large asset holdings, GK8’s Impenetrable Vault offers unmatched protection, entirely offline with no digital input or cyberattack exposure. This provides a higher level of assurance compared to cloud-based HSM or MPC solutions, which also come with more limited insurance coverage. Q: Can we use MPC with HSM? MPC and HSM can work together effectively. While MPC shards are stored in internet-connected environments, GK8’s uMPC allows for shards to be stored in an HSM, providing an additional security layer in a warm wallet setup. A hybrid solution like GK8’s Impenetrable Vault combined with uMPC delivers a strategic blend of strengths. This approach distributes custody across multiple technologies, each optimized for distinct operational needs. A layered solution ensures maximum operational compatibility, supporting diverse workflows and scaling to meet institutions’ evolving digital asset management demands. Q: What innovations in MPC technology should institutions expect in the near future? The industry is moving towards faster and more scalable MPC algorithms. Current solutions often cap at 6-8 signatures per second, limiting their ability to keep up with high-speed blockchains like Solana or Polygon, which require much faster signing algorithms.GK8’s uMPC delivers over 7,500 signatures per second, meeting the future demands of tokenized traditional assets and rapid blockchain ecosystems. Q: What is the next phase in the evolution of secure wallets after MPC? The next step beyond MPC for secure wallets is Impenetrable Custody solutions that are always offline like GK8’s Impenetrable Vault. While MPC is ideal for automating high-frequency transactions, Impenetrable Custody technology uses encrypted, one-way communication with zero digital input, ensuring assets are protected in a completely sealed environment, safe from cyberthreats. Pyramid of custody, from warm to Impenetrable Q: Is GK8 seeing an uptick in new client demand given the election outcome? Absolutely. We’re seeing a global rise in demand for secure custody solutions, driven, in part, by a sense from the U.S. that the incoming administration is going to encourage and accelerate the adoption of digital assets. Institutions, driven to maintain their competitive edge and stay ahead in a rapidly evolving landscape, are already exploring options for implementing custody solutions that combine security and accessibility, across all markets. Q: For institutional banks in Europe subject to MiCA regulations that have already implemented another custody solution, can GK8 integrate with such a solution? GK8 integrates seamlessly with existing custody setups, providing an additional layer of security and automation without requiring significant development. Our uMPC solution is MiCA-compliant, ensuring adherence to strict regulatory standards while enhancing operational efficiency. Ready to learn more about GK8’s uMPC? Schedule a demo today. 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