DigOpp

The Bybit hack has security on the top of everyone's mind. What should managers be concerned about when it comes to custody? How are security experts thinking about this incident? Earlier this week we spoke with Christopher and Thibault at Dfns, a crypto custodian with a unique model where key inventories are offloaded from user devices. We got their perspective on recent events and the trajectory of crypto custody. https://lnkd.in/eUR_BYda

🚨 Another week, another major crypto hack. Bybit was hit, this time through a vulnerability in Safe. Many security firms immediately shilled their products as solutions, oversimplifying the problem (e.g., “MPC would have prevented this” or “Clear signing is the answer”)... At Dfns, we’ve held off on commenting until forensics teams complete their analysis. $1.6 billion was stolen, and it’s critical to get the facts straight. Next week, we’ll publish a blog post breaking down what happened and sharing practical recommendations to prevent these kinds of attacks, both from a technical, logical, and operational perspective. But here’s the key takeaway: most crypto hacks aren’t blockchain flaws. They happen offchain due to poor information security hygiene, weak key management, and outdated processes. This case is no different. We had the chance to dive deep into this topic on the DigOpp podcast 🎙️, where Dfns Co-CEO Christopher Grilhault des Fontaines and CISO Thibault de Lacheze-Murel (ex Stellar, Google, French Army and Ministry of Defense) were invited by Phillip Moran, CFA (big thanks for having us!) to discuss: ✅ What actually happened in the Bybit/Safe hack ✅ Why no system is completely secure, and why “cold storage” or any other tech isn’t a foolproof solution. ✅ How outdated setups (e.g., Ledger + Gnosis Safe) introduce hidden risks. ✅ Why security is more than MPC, HSMs, or “clear signing”. It’s about layered defense, zero-trust access, admin experience, and so much more. ✅ The uncomfortable truth: many companies treat security audits as a checkbox exercise instead of a real opportunity to improve their defenses. ✅ What financial institutions demand in custody solutions—and why crypto firms must adopt enterprise-grade security to scale. The real security risks aren’t just onchain. They’re in how we manage keys, access, devices, infrastructure and other components. The Bybit/Safe hack is a serious wake-up call for everyone building in this industry. 🔗 Full podcast episode: https://lnkd.in/eQXeDa7v Thanks again to Phil and Dalton for hosting such an insightful discussion 🙏

A spotlight on security, compliance, and trust. DigOpp highlights what sets Tungsten apart.   Regulatory Excellence – Adhering to FSRA (ADGM) standards for a fully compliant custody environment. Military-Grade Security – Deploying HSMs and best-in-class IT security to safeguard digital assets. Institutional Focus – Providing tailored solutions with automated reporting and robust risk coverage.   Jose J. Perez Aguinaga, CEO of Tungsten, shares: "As the digital asset landscape evolves, we remain dedicated to upholding the highest standards of security and compliance to meet our clients' needs."   Read the full article here: https://lnkd.in/dUefWnHr   #TungstenCustody #CryptoCustody #DigitalAssets #InstitutionalFinance #FinTech #SecurityFirst

It's a great day - we've got a new article for you on crypto prime brokers! 🎉 We've compared native PBs featured on Counterparty Catalogue, highlighting the key features that matter most. This comparison is designed to help guide funds and trading teams, but to dive deeper, you'll need to explore our platform and browse their full profiles. Read it here: https://lnkd.in/gpAcAAmn This checklist is useful, but understanding the associated risks and breaking down each product and category is even more valuable - like knowing exactly what a cryptographic audit covers or how a company approaches business continuity planning. That's where we come in - completing ODD and CCSS audits on these solutions. Feel free to message me for more details. We’d also love to hear from you - what do you look for in a PB? Drop your thoughts in the comments! A huge thank you to everyone who contributed: Aplo Arkis CoinDCX LTP Matrixport Official sFOX and August. Want to be included in these comparisons? Let us know! #CryptoPrimeBroker #DigitalAssets #OperationalDueDiligence

Want to give a shoutout to a service provider you love? Had a bad experience and want to share insights with others? Join Counterparty Catalogue and share your experiences! Whether you’re looking for feedback on a service provider, comparing options, or discussing industry trends, our platform helps trading teams, funds, and allocators navigate the digital asset space with greater transparency and clarity on service providers. What can you do on Counterparty Catalogue? - Share your experiences with service providers anonymously - Join discussions in the Forum to ask questions and exchange insights - Explore profiles on leading custodians, prime brokers, and other service providers - Access in-depth, third-party ODD reports to evaluate providers before engaging - Stay informed with our latest research and industry insights We’d love your feedback! Let us know what features you’d like to see next. Check it out: https://lnkd.in/gpdhS_kp

Liminal is excited to be featured in DigOpp’s Counterparty Catalog! Self-custody is a game-changer for institutions looking to securely manage their digital assets. A secure, scalable, and customisable solution is key to delivering the best customer experience. With advanced cryptographic methods and MPC technology, Liminal’s wallet infrastructure ensures security, compliance, and operational flexibility while keeping you in control of your private keys. We’re proud to empower our partners with the tools they need to succeed on a global scale. Link to the article - https://lnkd.in/dUefWnHr #SelfCustody #DigitalAssets #Liminal #CustodyTech

What actually makes a custodian “regulated”? Many people assume that if a company calls itself “regulated” or “qualified”, it means it follows a strict set of compliance rules and standards - giving a sense of client protection. However, it’s actually more complex. Not all regulated custody solutions are created equal. It’s important to understand who issues the license and what obligations come with it. This is crucial when selecting a custodian. Key Considerations: - Who does the custodian report to? A state regulator? A federal agency like the SEC or FinCEN? An international regulator? - What client protections exist? Are insurance or reporting standards enforced? - What ongoing supervision is required? Are audits conducted regularly and who reviews them? Why does this matter? Some state-licensed custodians voluntarily set high security and compliance standards, while others operate with minimal oversight beyond basic registration. Meanwhile, custodians holding federal or internationally recognized licenses may be subject to stricter financial, operational, and risk management requirements. Understanding how different licenses impact security, reporting, and client protections is key when choosing the right custodian. 🔗 Check out our latest article, where we break down leading crypto custody solutions, licensing structures, and other key differences: https://lnkd.in/gyNqC53K What do you think is important when selecting a regulated custodian? Drop your thoughts in the comments! #CryptoCustody #RegulatedCustody #OperationalDueDiligence

🎉 Dfns completed its Operational Due Diligence by DigOpp ✔️ We’re thrilled to announce that Dfns is now featured in the Counterparty Catalogue, a new initiative by Digital Opportunities Group to standardize Operational Due Diligence (ODD) for crypto tech vendors. The Counterparty Catalogue fills a critical gap in crypto by providing a transparent, standardized resource for evaluating blockchain and digital asset companies. It’s designed to equip funds, institutions, and fintechs with detailed ODD reports, side-by-side comparisons, and insights to make informed decisions. We’re proud to be the *first and only company* to complete DigOpp’s ODD process—a rigorous 3-month evaluation resulting in a 30-page report that covers: ✅ Summary: Scope, overview, and risks. ✅ Risk Analysis: Impact-likelihood heat map and risk table. ✅ Company Profile: Transaction and policy visualization, custody technology (key generation, policy management, signing/broadcasting, disaster recovery, key exports), and claimable wallets. ✅ Products and Offerings: Product summary and reference pricing. ✅ Trading and Execution. Integrations, liquidity, settlement features, transaction lifecycle management. ✅ Financial Health: Financial stability, cash management, clients and assets, investors, banking, and credit relationships. ✅ Regulation and Compliance: Licenses, certifications, audits, policies, corporate structure, AML/KYC practices, investigations, and cybersecurity. ✅ Insurance: Coverage details. And we delivered near perfect risk assessment results: - No medium or high risks identified - Only 2 low risks and 4 informational risks In a nutshell, here’s why Dfns stands out according to the report: 🤖 API-First Infrastructure 🤹 Flexible Wallet Options ⚙️ Comprehensive Governance 🌐 Multichain Support 🔌 Ecosystem Integrations 🆘 Disaster Recovery 🛡️ Enhanced Security 📦 Scalable Deployments 🟢 Regulatory Compliance 💪 Proven Platform 🔗 Learn more about our ODD here: https://lnkd.in/eMBCZumq

✅ ODD Report Completed on Dfns Our deep dive into Dfns, a leading Wallet-as-a-Service platform, is complete! This milestone marks a big step for Counterparty Catalogue in our mission to enhance transparency and trust in the digital asset ecosystem. ✨ What’s in the report? - An in-depth look at Dfns’ products and services - A comprehensive review of their custody technology, operations, and financial health - An elaborate risk analysis of the company and its proprietary infrastructure - Details on their audits, licenses, and certifications - And more! 🔗 You can request the report on Dfns’ profile on Counterparty Catalogue to access a thorough, third-party evaluation of their operations, technology, and processes here: https://lnkd.in/gMMHsHve Thank you Christopher Grilhault des Fontaines, Clarisse Hagège, and the Dfns team for your trust and transparency throughout this process. This is just the beginning of setting new standards in the digital asset industry! #OperationalDueDiligence #CryptoCustody