As the world of finance continues to evolve, the rise of cryptocurrencies has brought about a new wave of investment opportunities. However, with these opportunities come new risks, especially with the inherent security concerns surrounding the custody of digital assets. In response, DECUS Network GmbH has created a cutting-edge solution that bridges the gap between asset managers, banks, and the crypto custody providers they rely on.
Introducing DECUS Network
DECUS Network is a Berlin-based startup that provides digital-asset custody middleware for asset managers and banks. They offer a single, unified API that enables their clients to integrate a network of crypto custody providers. By serving as a mediator between the client and the custody provider, DECUS Network addresses multiple layers of pain that have long plagued the crypto industry.
DECUS Network’s middleware is designed with security at the forefront. They never handle their clients’ private keys, which are instead stored with the custody provider. However, to ensure secure access to the custodian’s wallets, DECUS Network places the private keys in a client module that only the client can access. When a transaction is triggered via DECUS Network’s interfaces, an unsigned call is sent from the backend to the client module. The client can then authorize the transaction with their private keys. Once authorized, the call is signed and sent back to the backend and then forwarded to the custodian for execution.
Why Multiple Custodians?
DECUS Network addresses the challenge of security through diversification. Every system is hackable, regardless of its security standards, so spreading funds across systems is one way to mitigate the risk of cyber threats. Also, a provider might experience internal issues, leading to downtime and the inability for clients to access their funds. Using multiple providers can reduce the impact of such provider failures. Additionally, clients may experience a “lock-in syndrome” when they integrate a single provider, only to find that their needs or expectations change.
By enabling clients to spread their assets across several custodians, DECUS Network significantly reduces the risk of critical system failures. Clients are empowered to select a combination of custodians offering features tailored to their individual trading strategies.
Benefits of DECUS Network
By leveraging DECUS Network’s middleware, asset managers and banks can:
- Integrate a network of crypto custody providers via a single API
- Improve security by spreading funds across multiple systems
- Reduce the risk of critical system failures
- Tailor their trading strategies to different custodians’ features
- Simplify custody management and reduce operational costs
DECUS Network’s middleware is a game-changer in the world of digital-asset custody. By providing a secure and efficient way to integrate multiple crypto custody providers, DECUS Network is empowering asset managers and banks to navigate the complex crypto landscape with ease. Their innovative solution represents a crucial step in the broader adoption of cryptocurrencies in the financial world, and we are excited to see what the future holds for this groundbreaking startup.