Physical Key Management

Physical Key Management encompasses the procedures for handling the physical objects that contain cryptographic secrets, such as hardware wallets, smart cards, or paper backups. This includes the secure transport of these devices, the logging of their location, and the destruction of old or compromised devices.

In an institutional context, this is a highly audited and controlled process. Each device is assigned to an individual or a specific security role, and its movement is tracked through a chain of custody.

This ensures that no device can be lost or stolen without the firm knowing exactly who was responsible and when the incident occurred. By treating physical keys with the same level of rigor as physical cash or gold, institutions can significantly reduce the risk of theft and ensure the long-term integrity of their digital asset holdings and derivative collateral pools.