Cold Storage and Operational Controls

How institutional treasuries separate duties, approve transfers and rehearse recovery.

Segregation of duties

The person who initiates a transfer should not be the person who approves it. Dual control is the baseline for any material balance.

Tiered wallets

Hold operational balances in a small hot wallet and the remainder in deep cold storage with slower, more heavily controlled access.

Rehearse recovery

A recovery procedure that has never been tested is an assumption, not a control.

Key takeaways

• Segregation of duties: The person who initiates a transfer should not be the person who approves it.
• Tiered wallets: Hold operational balances in a small hot wallet and the remainder in deep cold storage with slower, more heavily controlled access.
• Rehearse recovery: A recovery procedure that has never been tested is an assumption, not a control.

Risk disclosure

This article is educational content published by Vaultero Capital and is not investment advice, a recommendation, or an offer to buy or sell any asset. Digital assets are highly volatile and you may lose some or all of the capital you commit. Projected or historical returns are not a reliable indicator of future performance. Consider your objectives, time horizon and tolerance for loss, and seek independent professional advice where appropriate. Full terms are set out in our risk disclosure.