Solution

Custody without stored keys.

Eliminate the single largest risk in digital asset infrastructure: private keys that exist at rest. Lokblok^® replaces key storage with ephemeral, policy-controlled reconstruction: no keys, no shares, no backups.

$3.1BStolen from exchanges, H1 2025

$1.4BBybit breach, single event

100%Major breaches involved key compromise

0Lokblok^® keys at rest

THE PROBLEM

Crypto custody still runs on a fragile assumption.

"Keys must exist, and must be protected."

So the industry built layers around it:

Cold walletsHSMsMPC / TSSVaults and backups

The core problem remains unchanged

Keys exist

Shares exist

Recovery material exists

Which means

They can be stolen

They can be leaked

They can be misused

They create liability

Even the most "secure" systems are just better ways of managing exposure.

THE LOKBLOK APPROACH

Remove the keys.
Keep the control.

Lokblok replaces stored private keys with ephemeral, policy-controlled reconstruction. Using Phantom Secrets™:

Keys are never stored

No MPC shares sit on nodes

No seeds exist in backups

No custodian holds persistent access

Instead:

Keys are deterministically reconstructed inside hardware

Only when identity, policy, and context are satisfied

Used once

Immediately destroyed

What This Changes

From storageto execution

You stop protecting keys and start controlling when they can exist.

From custodyto policy

Access is governed by cryptographic conditions, not key ownership.

From risk managementto risk removal

There is no static attack surface to defend.

HOW IT WORKS

Five layers. Zero persistent keys.

ToughID™

Identity defines who can act

Hardware-bound identity for every operator
No passwords or shared credentials
Biometric + hardware verification

Secure Terminal™

Environment defines where it happens

High-risk actions in attested environments only
No compromised laptops triggering withdrawals
Cryptographic environment attestation

Phantom Gate™

Policy defines when it is allowed

Multi-party approval (trader + treasury + compliance)
Context-aware rules (amounts, timing, conditions)
Cannot be bypassed by compromised UI

Phantom Secrets™

Phantom Secrets executes the action

Key reconstructed inside secure hardware
Transaction signed
Key immediately destroyed

Toughkey™

Hardware provides the trust root

Certified secure enclave for key reconstruction
Tamper-resistant execution environment
No key material leaves the hardware boundary

What Never Exists

No long-lived private keys or shares exist anywhere in the system.

Stored private keys

MPC shares parked on servers

Seed phrases or recovery blobs

Backup key material

USE CASES

Every custody model. Covered.

Exchanges & Brokerages

Hot/warm wallet signing without stored keys
Treasury rebalancing with enforced multi-party approval
Admin actions governed by identity + policy

Custodians

No persistent custody risk
Client assets cryptographically segregated
Recovery without seed phrases

Staking & Validators

Validator keys derived per node / epoch
No long-lived validator keys
Machine identity enforced via attestation

Institutional DeFi / RWA

Governance keys instantiated only when required
Identity-linked approvals for regulated workflows
No vault-based key exposure

REGULATORY ALIGNMENT

MiCA and beyond: exceeded, not just met.

Phantom Secrets exceeds MiCA expectations for private key protection by eliminating persistent keys altogether, not just protecting them better.

Private key protection

Eliminates persistent keys entirely

Removes primary breach vector

Asset segregation

No custodian-level key ownership

No co-mingling risk

Operational resilience

Zero-trust architecture

Hardware-attested execution

Auditability

Every action tied to identity, policy, and context

Cryptographically signed

WHY THIS MATTERS COMMERCIALLY

The business case is the security case.

Reduce custody liability

No stored keys = no key compromise exposure

Lower compliance burden

Architecture aligns with regulatory direction

Improve security posture

No static targets for attackers

Simplify operations

No key rotation, backup, or shard management

Enable better UX

No seed phrases. No recovery friction.

COMPARED TO EXISTING MODELS

Every current model stores something.

ModelProblem

Cold storage

Keys still exist

HSM

Keys persist in hardware

MPC / TSS

Shares still exist

Vaults

Backups create exposure

Lokblok^®

No keys.

No shares.

No backups.

Sits on top of your existing stack

Compatible with wallet infrastructure, HSM / MPC systems, node architecture, and custody workflows. No rebuild required: replace key storage with Phantom Secrets and add the identity + policy control layer.

Products Used in This Solution