Blockstream has launched a new institutional custody system for Bitcoin in partnership with French technology group Thales. The system was announced on November 13, 2026, and centers on a principle of keeping cryptographic keys offline and isolated from internet-connected systems.
The platform pairs Thales hardware security modules with Blockstream's Secure Multi-Party Computation technology. Under this design, private keys and MPC key shares remain sealed inside dedicated hardware during transaction signing. Rather than relying on a single private key, the signing authority is split into shares distributed across multiple parties, with no single share sufficient to authorize fund movement.
How the System Works
The entire transaction signing protocol executes within the Thales HSMs, preventing private keys from crossing the hardware boundary. The system targets custodial banks, prime brokers, and other institutional users, offering policy controls, segregated accounts, multisignature options, and cryptographic audit trails.
Blockstream Enterprise supports multiple signing models, including air-gapped setups and multisignature systems.
Broader Enterprise Expansion
The custody launch coincides with a wider institutional push from Blockstream. The company's Enterprise custody and tokenization services entered beta with select private clients in Q3 2026. The full security architecture was presented at the Digital Assets Forum in New York on the announcement date.
Blockstream's established enterprise product, the Liquid Network, is a Bitcoin sidechain designed for faster settlement and digital asset issuance. Liquid has surpassed $3 billion in total value locked. The company also opened a new office in Lugano in late 2026.
Security Philosophy and Market Positioning
The custody system reflects an emphasis on operational simplicity as a security strategy. By keeping sensitive operations offline within purpose-built hardware and minimizing software complexity, the system reduces potential attack surfaces. The approach addresses institutional concerns about regulatory compliance and auditor requirements, as keys secured in certified hardware with built-in audit trails provide clear documentation of protection measures.
The integration with tokenization services allows institutions to custody Bitcoin and issue tokenized assets through a single platform, combining with Liquid's existing asset issuance capabilities.
