Blockstream and Thales Launch Enterprise Custody Integrating MPC Inside HSMs

Blockstream launched an institutional custody platform on Nov. 13 in an expanded collaboration with cybersecurity firm Thales, aiming to shield digital asset operations with hardware-enclosed multi-party computation ¹. The offering links Thales hardware security modules (HSMs) directly to the Blockstream Enterprise suite to manage institutional $BTC storage and transaction signing ¹. At the time of writing, Bitcoin traded around $68,239 amid broader market drawdowns.

The service differentiates its key protection by executing the entire multi-party computation (MPC) protocol strictly inside Thales HSM hardware environments rather than relying on general-purpose software servers ¹. Traditional MPC protocols often handle cryptographic signing in host environments where key material can face exposure ¹. The new setup also uses Flexible Round-Optimized Schnorr Threshold Signatures (FROST), an advanced threshold signing scheme that allows distributed parties to generate valid signatures together without ever reassembling the underlying private keys ¹. Similar efforts across the market have focused on institutional MPC infrastructure, such as Google previews multi-party computation security service for crypto custody.

FROST Cryptography for Institutions

Blockstream said the rollout solidifies a two-year collaborative development cycle with Thales ¹. In addition to FROST, the system connects into the broader Blockstream Enterprise infrastructure, which supports integrations with existing legacy banking backends and the firm’s proprietary networks ¹. Blockstream Chief Product Officer Jeff Boortz stated that porting MPC execution inside the physical HSM perimeter addresses major threat vectors while retaining standard institutional multi-signer governance policies ¹. Blockstream has not yet disclosed pricing or specific financial institutions currently live on the platform ¹.