Solution
Enter digital assets without
inheriting their risks.
Banks don't avoid digital assets because of demand. They avoid them because of risk. Lokblok removes the biggest one: stored private keys.
The Reality
Banks are being pulled into digital assets from every direction.
The demand is real and growing across every line of business. But progress stalls for one reason: the current model is incompatible with banking-grade risk.
The Three Systemic Risks
What makes digital assets incompatible with banking-grade risk.
Private keys = single point of failure
- Loss = asset loss
- Theft = liability
- Misuse = reputational damage
Unacceptable in a regulated environment.
Identity & data exposure
- Centralised KYC databases
- Reusable credentials
- Expanding attack surface
Creates regulatory and privacy risk.
Off-chain vs on-chain gap
- Keys allow transactions before verification is complete
- Settlement can bypass real-world obligations
Banks must verify funds, compliance, and documentation, but today's infrastructure doesn't enforce it.
The Lokblok Model
Remove stored secrets. Prove every decision.
Lokblok introduces a Zero Standing Secrets (ZSS) architecture. Keys are reconstructed only when identity, policy, and context are all satisfied, then destroyed immediately.
What ZSS removes
Instead
What This Enables
Capabilities that weren't possible before.
Hot-wallet speed. Cold-storage risk.
- →Real-time operations
- →No persistent exposure
- →No key custody liability
True separation of duties
- →Maker / checker enforced in cryptography
- →No admin override
- →No bypass via API or malware
Auditability regulators can trust
- →Every action tied to a verified identity
- →A specific device
- →A moment in time, provable, not assumed
Pre-authorised execution
- →Transactions only occur after KYC / AML checks
- →Funds verification confirmed
- →Policy approval enforced, not monitored after
How It Works
Four layers. One coherent system.
Identity: ToughID™Learn more →
Hardware-bound identity for people and systems. No passwords, no shared credentials. Physical device possession is required for every high-privilege action.
Environment: Secure Terminal™Learn more →
High-risk actions restricted to hardened environments. No 'approve from your laptop on hotel WiFi' situations. The context of signing is verified, not assumed.
Policy: Hierarchical SignaturesLearn more →
Multi-party approvals enforced cryptographically, not just logged after execution. The CFO can't be bypassed. The quorum can't be overridden.
Execution: Phantom SecretsLearn more →
The key is reconstructed inside hardware, the transaction is executed, and the key is destroyed. No window of exposure. No residual secret.
Core Banking Use Cases
The same architecture. Every use case.
Payments & Stablecoin Treasury
- →No stored keys in live payment flows
- →Hardware-enforced maker/checker
- →Full audit traceability
Tokenised Assets (RWA)
- →Settlement only after legal/compliance verification
- →No premature key access
- →Reduced dispute and fraud risk
Wealth & Custody Products
- →Offer digital assets without custody exposure
- →No seed phrases
- →No recovery liability
Cross-Border & Sovereign Operations
- →No provider-controlled keys
- →No unilateral access
- →Reduced jurisdictional risk
Regulatory & Fiduciary Alignment
Lokblok directly addresses banking requirements.
Security & fiduciary duty
Eliminates the primary failure point: private keys. No stored key means no key to lose, steal, or misuse.
Audit & governance
Policy-driven, identity-bound actions. Fully traceable and provable. Every decision has a cryptographic receipt.
Data protection (GDPR, privacy)
No centralised identity honeypots. Selective disclosure via cryptographic identity: only what's needed, when needed.
Operational resilience
Zero-trust architecture with no single point of compromise. Each layer fails independently without cascading exposure.
Why Current Approaches Fall Short
Every alternative has a structural flaw.
Third-party custody
Counterparty and regulatory risk: you've outsourced the liability but not eliminated it.
Build in-house
Complex, expensive, and still fragile: the underlying architecture still stores secrets.
MPC / HSM
Keys or key shares still exist somewhere. The attack surface has moved, not disappeared.
Traditional IAM
Reusable credentials and data exposure: still a honeypot, just better guarded.
Lokblok
Commercial Impact
The strategic shift banks need.
Banks don't need better key management. They need no keys to manage.
Enter digital assets safely
Without rewriting your entire risk model. The architecture does the heavy lifting.
Reduce regulatory friction
Architecture aligns with where regulation is going, not just where it is today.
Improve insurability
No persistent key exposure means underwriters see a fundamentally different risk profile.
Accelerate product rollout
Payments, custody, tokenisation: one architecture covers all of them.
Products Used in This Solution
