Liminal Custody has launched HSM Vaults, a new digital asset custody offering that combines Hardware Security Modules (HSMs) with Multi-Party Computation (MPC). The product is aimed at banks, custodians, and enterprises expanding into digital assets while trying to preserve the control, compliance, and governance standards they already apply in traditional finance.
The release points to a wider shift in custody infrastructure. For institutions, the issue is no longer limited to wallet access. Private key protection, approval workflows, auditability, and operational resilience are now central requirements. Digital assets introduce a direct dependency on cryptographic keys, and if those keys are lost or compromised, the associated funds can be lost permanently. That has made custody architecture far more demanding.
HSM protection and MPC authorization in one system
According to Liminal, HSM Vaults brings together two different security models. HSMs provide a hardware-based layer designed to protect cryptographic keys inside secure environments built to resist tampering and unauthorized access. MPC adds a distributed authorization model, splitting transaction approval across multiple participants or systems rather than leaving control with a single point.
The combined setup is meant to reduce single points of failure. Transactions move only after passing through multiple authorization layers, while the underlying keys remain inside certified hardware environments. Liminal also said institutions can include both online and offline devices in approval workflows, allowing separation of duties across compliance, security, and operations teams. Each transaction generates cryptographic proofs to confirm that internal policy requirements have been met before execution.
Built with Securosys and shown on Primus HSM
The solution was developed in partnership with Securosys and demonstrated using the company’s Primus HSM platform. The report says the platform meets established certification standards for cryptographic hardware.
Mahin Gupta, Founder and Chief Executive Officer of Liminal Custody, said the company has combined the static security of HSMs with the distributed security of MPC to deliver a product intended to give banking and enterprise clients the level of confidence, control, and assurance expected from mission-critical infrastructure. Securosys Chief Executive Officer Robert Rogenmoser said the pairing of certified Primus HSM protection with Liminal’s MPC-based authorization model gives banks and enterprises the security, governance, and cryptographic trust needed to scale digital asset services.
Institutional custody is shifting toward process control
As financial institutions move deeper into digital assets, custody requirements are expanding beyond basic key storage. Institutions are expected to meet governance, audit, and resilience standards similar to those used in traditional asset custody, while also keeping transaction operations workable. Many transfers require layered approvals, policy checks, and links to internal systems. The custody stack has to support all of that.
The report notes projections that institutional digital asset holdings could exceed $10 trillion by the end of the decade. That expectation is increasing pressure on providers to deliver infrastructure that can operate at scale. Hardware-based tools such as HSMs remain a core part of that approach, while software-based models such as MPC are being added to improve flexibility and scalability.
At the industry level, the combination of certified hardware and distributed authorization shows how custody providers are adapting existing financial security frameworks for blockchain-based assets rather than replacing them outright. For banks and enterprises, the practical question is how to support tokenized assets, payments, and custody services without weakening governance standards. Multi-layer security models like HSM Vaults are likely to become more common as that buildout continues.
How effective these systems prove to be will depend on how well they connect with compliance, reporting, and transaction management processes. In institutional digital asset operations, custody infrastructure is moving into a much more central position.