Converge22 Dispatch #5: A Deeper Look at Digital Asset Custody

Events Company

Converge Dispatch is a blog series focused on exciting updates announced during Converge22, Circle’s inaugural crypto conference. See previous articles here, here, here and here.

At Converge22, Circle’s first ecosystem conference, we announced a wide range of product enhancements and outlined our vision to help customers run more of their businesses on-chain by making it easier to store, pay, invest and borrow digital currency. 

Today, I want to further explore this vision by diving deeper into the storage aspect. As more business activity moves on-chain, it can create challenges around account security, business continuity, transaction integrity and extensibility within the broader Web3 ecosystem. Circle is rapidly building a world-class, enterprise-grade treasury platform and recently acquired CYBAVO, which specializes in secure digital asset management, to help businesses tackle these challenges head-on. 

My colleague Eran Shtiegman recently highlighted Circle’s ability to offer custody alongside payments, stablecoin liquidity and other treasury functions is unique in the market and can be a difference-maker for businesses that want to capitalize on the cost, speed and operational efficiencies of blockchain.

Here’s a closer look at custody features available through and coming to the Circle Account. 


Custody made simple

Our custody solution gives customers flexible systems with enhanced risk controls to empower organizations to define workflows that govern transactions. We help eliminate single points of failure, let you set limits and specific approval policies per transaction threshold, and you track your funds at all times. 

At the core of our solution is the separation of the rights to use the private keys from the responsibility of keeping private keys secure. This is essential, since it helps to prevent mistakes or abuse by an individual from sabotaging the business. 

We deliver this through our Multi-Party Computation (MPC) Wallets, which automatically create multiple distinct private key-shares that are each responsible for contributing its component to a predetermined "signing event." This means there is no single private key, and no single point of failure. Since MPC distributes the private key and allows for multiple approvers and threshold approval configuration, it is a highly secure form of key generation.

Businesses can assign different roles to different employees so they have the appropriate level of access. The flexible threshold approval chain allows for up to 15 levels of approvals and each level can support 15 approvers. Businesses can also set granular employee level limits that help enable business continuity, enhanced approval workflows ensure transaction integrity, and seamless access to blockchain apps.

Next-generation operational efficiency

The Circle Account combines the efficiency of blockchain transactions with the security and ease-of-use of traditional platforms that treasurers have come to rely on in recent years. You can automate recurring transactions, create access for multiple users and receive notifications of outstanding tasks – in addition to seamless stablecoin liquidity and integrated payments. 

In addition, the Circle Account brings extra efficiencies that are only possible from moving treasury operations on-chain. Blockchain is a global, 24/7 environment, which makes it easy to operate outside of banking hours. Once live, custody through the Circle Account will enable approvals from anywhere at any time, which can be a game changer for businesses that operate globally

In the near future, we’ll begin offering some of these services to select customers before rolling them out more broadly to everyone. In the meantime, we invite you to explore our platform in greater detail. Stay tuned for more exciting developments as we accelerate the future of on-chain business and treasury! 

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