Case Study · Blockchain & Digital Asset Custody
MPC Custody: BLS Threshold-Signature Wallets
A distributed-key-generation wallet where no single machine, party, or administrator ever holds a complete private key — signatures are produced jointly, verified on-chain, and a lost or compromised share never puts funds at risk.
5-of-8
Threshold signing group
BLS12-381
EIP-2537 on-chain verification
Zero
Parties that ever see the full key
Sepolia
Live testnet deployment
The challenge
A single private key is a single point of failure — lose it and the funds are gone, leak it and they're stolen. Traditional multisig moves that risk around but still needs every signer to run compatible on-chain logic and pay for N separate signature checks. Real institutional custody needs the security of "no one person can move the funds alone" without a private key ever existing in one place, whole, at any point in time — during generation, signing, or recovery.
What we built
Distributed Key Generation
8 parties, one key, zero single point of failure
Eight independent parties jointly generate a group public key without any party ever computing the full private key — each holds only their own share, communicating over a secure channel built for the protocol.
On-Chain BLS Verification
One signature, one cheap check
A threshold signature aggregates into a single BLS12-381 signature the smart contract verifies directly using Ethereum's Prague-hardfork precompiles (EIP-2537) — no on-chain signer list, no per-signer gas cost, deployed and tested live on Sepolia.
Shamir-Split Key Import
Bring an existing key in, safely
An admin can migrate an existing private key into the threshold group by splitting it into shares across all 8 parties — the coordinator that orchestrates the split never reconstructs or sees the original secret at any point.
When it's used
- Institutional treasuries that can't have any single executive, device, or laptop able to move funds alone.
- Exchanges and custodians securing hot-path signing without exposing a full key to any one server.
- DAOs and multi-stakeholder funds that need joint approval baked into the cryptography itself, not just a policy.
- Migrating an existing wallet into threshold custody, via the Shamir-split key import, without ever exposing the original key whole.
How to use it
Our live demo runs the real protocol: 8 parties, a 5-of-8 threshold, and two demo wallets (Company Treasury, Payroll Reserve). Each party's key share lives only in their own browser — open enough party pages to reach the threshold, and watch a wallet get generated and a transaction get signed, live.
- Open the parties page and pick a wallet
- Open at least 5 of the 8 party pages (in tabs is easiest)
- Watch the threshold key generate once enough parties connect
TeleCanor's blockchain offering
MPC custody is one piece of a broader blockchain and DeFi practice -- alongside indusCrypto, our live trading platform, and a Rust-based Layer 1 testnet with AMM, perpetuals, and a native signed token (AUUM) already running, in the spirit of Hyperliquid.
AUUM testnet is measured at ~374 signed transactions/sec end-to-end (ed25519-authenticated, not a projection) -- try it yourself at wallet.auum.net.
indusCrypto is live now — visit induscrypto.org →
Need custody that survives a lost laptop?
Let's talk about threshold signatures, multisig, or the rest of your digital-asset infrastructure.