For digital asset businesses, the increased clarity in the global regulatory landscape, driven by frameworks like MiCA and DORA in the EU and from the Hong Kong SFC and Monetary Authority, has been a welcome evolution. It also means that internal and external compliance requirements are growing more complex to manage as digital asset businesses consider expansion strategies and the need to streamline operational plans.
Digital asset businesses often have a variety of existing solutions, and overhauling this infrastructure is costly and complex. Institutions need a way to integrate these solutions seamlessly while ensuring operational efficiency, security, compliance, and scalability.
To address these challenges, Fireblocks introduced Key Link, a solution that bridges the gap between compliance and business acceleration.
The problem: managing complex digital asset infrastructure without losing momentum
For regulated institutions, managing digital assets comes with unique challenges:
- Limitations on existing solutions: As the digital asset space evolves, enhancing legacy wallet infrastructure becomes costly and time-consuming, increasing the total cost of ownership (TCO).
- Resource Drain: Development teams are often pulled away from strategic initiatives to focus on building and maintaining bespoke integrations for regulatory compliance.
- Business Risk: Inadequate governance and policy frameworks can expose businesses to vulnerabilities, regulatory scrutiny and potential fines.
The solution: Fireblocks Key Link
Fireblocks Key Link solves these challenges by allowing businesses to integrate their new or existing HSM-based key management solutions into the Fireblocks platform, enabling full use of Fireblocks’ advanced wallet capabilities without disrupting current infrastructure.
With Key Link, regulated businesses can:
- Reduce Complexity: Simplify operations by connecting existing key management systems to Fireblocks’ robust ecosystem, which includes highly available node infrastructure, wallet management APIs, governance tools, and automated workflows.
- Accelerate Growth: Focus development resources on expanding digital asset services rather than managing the intricacies of regulatory compliance.
- Enhance Risk Mitigation: Strengthen governance and policy controls across all digital asset operations using Fireblocks’ Policy and Compliance Engines.
- Reduce Costs: Key Link has been built to be an easy integration on top of any solution(s) businesses use, requiring few resources to onboard.
How Key Link works
Key Link serves as a secure gateway, allowing businesses to connect their existing key management systems to Fireblocks’ platform and access its full suite of services.
Key Link enables customers to securely connect their preferred key management solution to Fireblocks using only public keys, verified via zero-knowledge proofs, ensuring private keys remain protected.
Customers can then initiate transactions through the Fireblocks Console or API. All these transactions are processed in accordance with the workflow authorisation rules, compliance checks (KYT or AML checks), and policy requirements defined by the customer. Signing requests go through the Fireblocks Keylink Agent, an on-premises open-source software provided by Fireblocks. The Agent bridges signing requests and responses between Fireblocks and the customer’s key management system.
Once signed, transactions are cryptographically verified to ensure accuracy and validity, before being broadcast, with support for over 80 supported blockchains.
Fireblocks Key Link solution ensures customers can securely link their keys to Fireblocks regardless of their key management system. They also benefit from Fireblocks’ security, compliance, and scaling solutions.
Real-world impact
Kevin Cui, CEO of OSL, integrated Key Link to support the growing demand for new blockchains on their platform and said:
As a regulated digital asset platform, security is our highest priority, both for OSL and our customers. In addition to our groundbreaking US$1 billion insurance coverage for digital asset custody, the integration of Fireblocks’ Key Link enables us to seamlessly incorporate advanced capabilities from the Fireblocks platform into our existing custody solution while ensuring safety and compliance. This empowers us to scale quickly and respond to market demands with new features as they emerge.
Driving the future of digital asset custody
Fireblocks Key Link is more than just a product; it’s a strategy to empower institutions to thrive in a fast-evolving digital asset ecosystem. By bridging the gap between compliance and innovation, Key Link empowers institutions to confidently navigate the rapidly changing landscape of digital assets.
To learn more about Key Link and how it can help your institution unlock the next stage of its digital asset journey, visit our product page.
