As both a regulated digital asset custodian and managed self-custody wallet provider, the technical questions CoKeeps are most often asked include:
- What is a managed self custody wallet?
- To what extent do we utilise virtual accounting?
- How do we generate or store cryptographic private keys?
In this article, we are going to explore how CoKeeps defines managed self custody, but before we do that, we first need to explore alternative solutions such as self managed solutions or virtual custodial services.
What are the perils of traditional self-managed solutions?
Self managed solutions range from hardware wallets such as Ledger to software wallets such as MetaMask, neither of which are designed for organizations or individuals seeking to provide shared access to their assets. Utilizing tools or services provided by unregulated organizations could result in unexpected access policies whilst also exposing individuals to counter-party risk. Storing or accessing private cryptographic keys or backup seeds used to generate those keys can often provide an increase in vulnerabilities with a lack of accountability – and systems that rely upon 2FA and or passwords as their primary source of security are prime examples of common flaws found everywhere.
What are the benefits of managed self-custody solutions?
Managed self-custody solutions give individuals and organizations the choice as to who and how other people are able to access specific assets, whilst ensuring that those assets cannot be seized by other forces. Regulation in Malaysia has been slow and methodical, but has also resulted in a very clear path with licensed operators and activities now in place. Our customer’s assets are segregated by dedicated environments with regional regulatory compliance and integrated AML and KYC solutions. We generate cryptographic keys on demand using MPC methods, which removes the insecurity of storing them whilst also ensuring that they can only be re-generated on approved devices.
The primary features of our dedicated environments
CoKeeps customers are provided a unique network of dedicated servers specific to their selected subscription plan. Each of these private computing networks is designed around the regulatory compliance of a specific legal jurisdiction.
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Multi-Purpose Wallets
We provide individual cold wallets that can only be accessed by pre-approved devices as well as shared hot wallets that are only accessible via our APIs.
Each of our plans allow for an unlimited number of administrators who can collectively vote to approve new wallet users, the features they can use and the destinations they can send to.
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Smart Services
Our infrastructure can be used to support regulatory compliant organizations that are seeking to build their own applications and services that utilize digital assets.
Our infrastructure includes an extensive repository of smart contracts that can be used to tokenize existing assets or create entirely new ones able to bundle or manage others.
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Flexible Custody
Our optional custodial solutions also enable the approval of third-party trustees or trusted family members to be given approval or recovery rights.
Detailed real-time reporting is available in different formats and includes extensive information on all entities and interconnected activities by a configurable degree of separation.
What makes our wallets different to our competitors?
At no point do we or any of the approved devices connected to our environments store any private or sensitive information. We do not store credentials used to access our systems and private keys are generated on demand. Our customers control their own online authentication credentials using a combination of domain based usernames and self-hosted APIs. Users of our system generate their own cryptographic API key-pairs, only ever sharing public keys, which can then be used to verify API messaging signatures. Not only is each customer allocated a dedicated environment, but any human interaction with their accounts can only be performed on a dedicated device.
