Custody Policy
Custody Policy summary
As of the date of this material, Zodia Custody operates a ‘cold’ (i.e. offline) storage solution in respect of crypto assets it provides services for. The main risk of such solutions is the risk of damage or loss of the infrastructure on which such storage relies. This may result in the crypto assets being inaccessible or incapable of being accessed until such time as the wallets can be reconstituted using the encrypted master seed in conjunction with a new Hardware Security Module (HSM). With the master seed, the master key can be recreated which allows for the reconstitution of the wallet seeds and respective private keys. The master seed is unique and cannot be recreated.
All crypto assets held at Zodia Custody will be separated into segregated cold storage address wallets per each Zodia Custody client in accordance with the client’s instructions. Cryptographic master keys are generated in an offline environment and are stored in HSMs. Zodia Custody’s officers and auditors witness and document all cryptographic master key generation ceremonies. Wallets can be reconstituted from the encrypted wallet seeds protected by the master key. Zodia Custody stores shards of the master key in vaults in secure locations with security 24 hours a day, 7 days a week, 365 days a year across the globe in jurisdictions with robust regulatory regimes. For decryptions, withdrawals follow stringent cold storage restore protocols to sign any transaction and bring funds back online, including multiple independent multiple actors, multi-factor authentication, transaction intent digital-signing, software-based security enforcement and operational checks and balances.
The cold storage solution operated by Zodia Custody offers instantaneous withdrawals and 24/7 availability of assets. Instantaneous withdrawals removes the timelapse which may allow a change or suspension in withdrawal instructions and/or the ability to correct transaction instructions. Therefore, a high non-repudiation solution using digital signatures is implemented such that multiple reviews and approvers are required, reducing the likelihood of errors or incorrect transactions from being made. Regardless of the above, it is possible that Zodia Custody or a system interfacing with Zodia Custody could be subject to a hacking attempt. If successful, this could result in the loss of crypto assets.