Blockstream launches Bitcoin custody system with offline security focus

Bitcoin custody system — Blockstream, the Bitcoin infrastructure firm co-founded by Adam Back, has launched a new institutional custody system developed with French technology group Thales, emphasizing offline security to combat cyber threats.

The solution, announced on Friday, integrates Thales’s hardware security modules (HSMs) with Blockstream’s Secure Multi-Party Computation (Secure-MPC) technology. The company states this architecture ensures the entire transaction signing protocol is executed within the protected hardware environment, unlike some conventional MPC setups that may perform parts of the process outside dedicated security hardware.

In an interview, CEO Adam Back argued that complex, internet-connected custody protocols are vulnerable, citing past exchange hacks. He advocated for simpler, offline “cold storage” models, stating that “complexity is the enemy of security.” Back also suggested that advances in artificial intelligence could make it easier for attackers to exploit subtle flaws in intricate security implementations.

The launch represents a push from a foundational Bitcoin company towards institutional-grade custody that prioritizes physical air-gapping and dedicated hardware over purely software-based or highly interactive security schemes.