Blockstream launches institutional custody with Thales HSMs

Blockstream on November 13, 2026 launched its Enterprise Custody Solution, an institutional bitcoin custody product developed with Thales. The entire secure multi-party computation (MPC) signing protocol runs inside Thales hardware security modules (HSMs) rather than partly outside them, the company said.

Details

The system uses the FROST threshold signing scheme (Flexible Round-Optimized Schnorr Threshold Signatures), pairing distributed key protection with hardware-backed security. It integrates with clients' existing financial systems and is delivered through Blockstream Enterprise, the company's institutional platform. The firms have worked together for two years.

Blockstream President and COO Michael Minkevich said the work combines advanced hardware security with Blockstream's bitcoin engineering. Chief Product Officer Jeff Boortz said moving MPC execution inside the HSM addresses critical security risks while preserving practical signing.

Blockstream CEO and co-founder Adam Back, speaking to Cointelegraph, argued that MPC protocols are complex and hard to secure, and that AI can help attackers find small implementation errors. In his view, complexity is the enemy of security.

What it means for the market

Institutional holders, including ETF issuers and bitcoin treasury companies, need custody with verifiable key protection. The launch adds another provider to that segment, one that stresses hardware isolation of signing. The announcement names no first clients or rollout timeline.

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