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Read through our updates covering feature launchs, partnerships, thought leadership pieces and trending topics on how we are solving the security and custody problem for Web3 institutions
Sheel |
January 22, 2024

As we continue constructing a fully regulated digital asset custody platform, ensuring secure storage for both crypto and fiat assets remains a critical priority. 

To facilitate the last checkpoint of enabling institutions to convert their digital asset treasury into fiat currency, we’re expanding beyond pure wallet infrastructure and integrating seamless fiat off-ramp capabilities for our partners.

We’re thrilled to announce our partnership with Encryptus, licensed and compliant off-ramp solutions tailored for institutional clients. This collaboration elevates Liminal’s service offerings by empowering our partners to convert their digital asset treasuries into fiat currencies efficiently.

Integrating A Seamless Off-Ramp Solution

The digital asset ecosystem historically faced friction points when transitioning between fiat and cryptocurrencies. Off-ramp solutions address this pain point by enabling efficient and streamlined conversion between asset classes, minimising value loss and simplifying compliance processes.

Here’s how off-ramp changes the game:

  • Reduced Friction: Frictionless conversion minimises delays and operational complexities associated with traditional fiat-crypto exchange methods.
  • Enhanced Efficiency: Streamlined workflows expedite asset conversion, increasing speed and cost-effectiveness for institutional and individual users.
  • Optimised Value Preservation: Advanced off-ramp solutions prioritise minimising price slippage and value loss during conversion, protecting user portfolios.
  • Simplified Compliance: Integrated compliance features navigate regulatory complexities, ensuring adherence to relevant financial regulations.

With our partnership with Encryptus, we have embedded their institutional-grade APIs, connecting their off-ramp solution within Liminal’s wallet and custody platform. 

This integration simplifies our clients’ liquidation requirements while keeping their assets secure and more:

  • Effortless Digital Asset to Fiat Conversion: Our partners will be able to access treasury management and facilitate business payments in 54 countries and individual payments in an extensive network of 80+ countries.
  • Streamlined Compliance and Regulation: Our partners will be able to leverage Encryptus’s rigorous licensing and compliance framework, ensuring adherence to stringent financial regulations.
  • Enhanced Platform Value: We will be able to expand the functionality of the Liminal custody solution, attracting institutional users seeking comprehensive digital asset management capabilities.

Moving Towards A Robust Off-Ramp Partnership With Encryptus

The partnership between Liminal and Encryptus earmarks a significant step forward in secure digital asset custody, representing a shared commitment to pushing compliant practices while supplying institutions with easy access to convert their digital assets to fiat. 

For Encryptus, the opportunity to integrate with Liminal’s established platform presents a chance to reach a wider audience and scale their innovative off-ramp solutions to new heights. By streamlining fiat conversion within Liminal’s secure custody infrastructure, Encryptus gains access to a trusted network of institutional users seeking seamless and compliant treasury management.

For Liminal, this collaboration reinforces our dedication to partnering with companies that demonstrably prioritise clear governance and robust policy frameworks. By aligning with Encryptus’s stringent compliance standards, we reaffirm our commitment to building a secure and sustainable future for digital assets, where trust and regulatory certainty go hand-in-hand.

Buckle up as we’re about to take a trip down memory lane. 

The year 2023 was a wild ride that showed signs of a plummeting market, groundbreaking innovation and regulatory hurdles. 

Contrastingly, in the same year, we saw no market-shattering crashes. Financial institutions extending an olive branch, key jurisdictions unlocking the doors to blockchain technology. 

Simultaneously, at Liminal, we experienced significant breakthroughs, re-engineering our positioning and becoming a pioneer in digital asset security with bank-grade custody. 

We took major strides this year, right from building comprehensive products to becoming a qualified custodian, from revamping our brand design to expanding our offices in newer locations, from partnering with hyper-local communities to onboarding a diverse set of clients,  we did it all. 

So, let us take you through everything we accomplished in 2023 and what the future holds.  

Liminal Became A Qualified Custodian

One of the prominent moves we made this year was to change our positioning as a regulated custodian from being a wallet infrastructure platform. 

We got two licenses in key jurisdictions to operate as a regulated custodian. 

The first one came from Hong Kong, where we acquired the TCSP license issued by the SFC, which oversees and regulates financial activities to ensure compliance with legal and regulatory obligations. 

Our next license came in the MENA region, where we got In-Principle Approval for the FSP license granted by the FSRA, a governing body in ADGM, to establish a progressive financial services environment. 

Both these licenses paved the way for Liminal to push its wallet infrastructure and offer bank-grade custody to institutions looking to operate in these particular regions. 

Liminal Introduced A Suite of Products & Features

Continuing our building spree, we launched new products and integrations to broaden the existing infrastructure and added more parameters of security, scalability and sustainability. 

Staking-as-a-Service

Liminal launched staking for institutions to eliminate the risks involved in running staking nodes and the vulnerabilities in hot wallet transfer. 

Hence, we introduced an industry-first mechanism of cold wallet staking to ease staking for institutions and secure assets explicitly.  

Whitelabel Solution

Accelerating the go-to-market time for organisations looking to build a secure and customisable application, Liminal launched its whitelabel solutions

Targeted to help organisations meet security standards, manage assets with maximum control, and add their custom branding to give it a personal touch. Our whitelabel solution is a first-in-class custodian-developed solution for institutional grade custody.

Smart Consolidation

We are building not just secure custody but also automation-based features to eliminate manual errors, increase the throughput of transactions and scale institutional wallets. 

Taking this ahead, we launched the Smart Consolidation feature to automatically calculate all the active addresses and consolidate them into a single address. With this level of automation, managing multiple addresses becomes uber easy for wallet teams. 

Travel Rule 

To limit the use of cryptocurrencies for activities like money laundering and terror financing by regulatory bodies, travel rule was mandated for institutions to follow. 

Continuing the latest compliance integration policy, Liminal partnered with Notabene to introduce Travel Rule, enabling institutions to manage counter-party risk and extend the process of due diligence right from the Vaults dashboard.   

Liminal Accured List Of Security Certifications

Following our ISO certification for data privacy and risk management, we added two new security certifications to fortify our systems and build trust for our clients. 

Liminal Achieves Crypto’s Highest Security Mark: CCSS Level-3 Certified

Cryptocurrency security lacked a gold standard, creating a vulnerable ecosystem. Enter the CryptoCurrency Security Standard (CCSS), setting the bar for auditing and certifying custodian infrastructure and establishing levels of trust and confidence for investors. 

Liminal became only the second wallet infra platform and the first regulated custodian to be accredited with Level-3 certification, deeming wallets, transfer environments, workflows and engines safe and secure. 

Liminal Reciueved SOC 2 Type II Certification

To tackle threats in institutional-grade security, organisations’ SOC has been identified as the primitive compliance standard for service organisations to handle customer data.

Liminal successfully attained SOC 2 Type II certification, validating its setup of security controls & compliance processes to be industry standard. 

Liminal Level Up

Liminal unveiled its most significant platform upgrade ever, revolutionising the future design standard of a qualified custodian. This level-up activity included revamping our website and product UI, giving a completely new look and feel to not “Liminal” but “Liminal Custody”. 

The Liminal level-up activity was a strategic step and the biggest one for us this year to create an intuitive, inviting and tailored experience for our clients. 

Liminal Reached New Borders

We spread out our operations this year, reaching new borders and onboarding a new wave of institutions across gaming, DeFi, HNI wealth, treasuries, and exchanges! From Indonesia and Africa to India, UAE, and Korea, we are setting up custody operations worldwide. 

This isn’t just a roster of clients; it’s a network ready to spark connections, collaborations, and shared success to further the definition of secure assets. 

Liminal Collaborated With Law Enforcement Agencies

The best and the proudest moment of Liminal for this year was when we collaborated with CBI & Himachal Prashesh police department to aid them in seizing digital assets. 

This partnership put us on the map, as we became the first point of contact for LEAs in India, and we standardised the process of secure seizure of digital assets. Leveraging our expertise, we enabled a safe space for officers to learn the basics of custody, contributing to a safer digital landscape.

Team Liminal Grew Bigger

Building such a massive infrastructure, prioritising security and compliance over everything else, we had to grow the team to build at pace and expand at an even higher level. Not only did we grow in team numbers, but we also elongated our footprint to new destinations. 

Team Liminal went from 32 to 70 with 5 new offices in Mumbai, Ahmedabad, Hong Kong, Singapore and ADGM, setting up our custody operations steadfastly. 

What’s To Look Out For In 2024

We are excited to announce that our commitment to integrating the most secure digital asset wallets with a cutting-edge custody platform is swiftly becoming a reality. 

The upcoming year, 2024, will serve as a testament to this transformative journey. Moving beyond self-custody, we are constructing a comprehensive infrastructure encompassing both custodial and non-custodial wallets. Exciting products are set to launch starting from the first week of January, some of which are: 

  • Official Custody Platform Launch
  • Liminal’s Off-Exchange Settlement Hub
  • Secure Custody of Real-World ‘Tokenised’ Asset

The Web3 space has evolved explicitly this year, pushing the narrative of secure digital asset custody and security, introducing new regulations and compliance standards, licensing VASP providers and standardising the use of custodians as a trusted third party. 

At Liminal, we took major strides this year, from building comprehensive products to becoming a regulated custodian, from revamping our brand design to building the full infrastructure of custodial and non-custodial wallets.

January 5, 2024

A Roadmap for Secure Custody in India

The Indian digital asset ecosystem has witnessed explosive growth over the past few years. This burgeoning rise in the use of digital assets is a testament to the advantages they bring over traditional asset classes. Whether for investment purposes, as a medium of payment, or to tap into the wider utility of the Web3 industry, these assets are increasingly being used in India

Grassroots Crypto Adoption
How India Ranks in Grassroots Crypto Adoption

 

Nevertheless, institutional interest has remained dim thus far due to the lack of clarity from the government about the asset class. The added incidents of theft and misappropriation of digital assets, domestically and internationally, keep institutions at bay. However, that will change as the country looks to roll out regulations tailored to the industry within the next two years.

Nevertheless, institutional interest has remained dim thus far due to the lack of clarity from the government about the asset class. The added incidents of theft and misappropriation of digital assets, domestically and internationally, keep institutions at bay. However, that will change as the country looks to roll out regulations tailored to the industry within the next two years.

Financial institutions, investment firms, digital asset exchanges, and banks will take the central focus as a defined regulatory framework makes its way, expectedly, in the next two years. The onus falls on institutions to implement proper storage mechanisms and processes.

Navigating the Maze: Types of Digital Asset Custody Solutions

First things first, institutions must know the different custody solutions to choose the right ones for their storage practices.

Hot Wallets

  • Store private keys within devices connected to online networks.
  • Software applications on mobile and computer devices.
  • Sign transactions quickly and transfer funds fast.
  • Vulnerable to cyberattacks since the devices housing them are connected online.

Cold Wallets

  • Store private keys within air-gapped computers and hardware security models (HSMs).
  • Highly secure against exploits since the keys are stored in offline devices.
  • Sign transactions offline and relay them online to blockchains.
  • Fund transfers are slow and inefficient.

Multi-Signature (Multisig) Wallets

  • Require multiple private keys to initiate transfers.
  • More secure than wallets using a single private key to secure assets.
  • Bring secure governance in institutions through distributed transaction signing capabilities – no one corrupt member can steal institutional funds.
  • Drawbacks include high transaction fees at the blockchain level arising from several keys signing every transaction and the support for limited assets.

Multi-Party Computation (MPC) Wallets

  • Offer distributed security and governance by dividing a single private key into several shards.
  • Overcome high costs associated with multisig wallets thanks to a single transaction signature arising from multiple key parts.
  • MPC algorithms create and deliver key shards stealthily, ensuring they are delivered to the right users and not visible to others using the wallet.
  • The key refresh feature enables MPC wallets to generate new private keys after every transaction.
  • Support several asset types from numerous blockchains and are easily implementable in institutional platforms.

Fortifying Your Assets: Best Practices for Secure Digital Asset Custody

Choosing the right custody solutions is just one part of operating secure custodianship facilities. Institutions must do much more. Here are some best practices to follow.

Risk Management

Institutions and enterprises dealing with digital assets must ensure that all the risks associated with their operations are identified and mitigated. The risks of operating custodial infrastructures are numerous and can vary depending on the kind of services offered by entities.

They can range from providing services for jurisdictionally banned digital asset types, like privacy and security coins, to allowing sanctioned wallets to bring crime-related funds to platforms. Also, institutions may operate conflicting verticals that can jeopardise client funds. Ventures must anticipate such risks to strategise their prevention.

Internal Controls

Most institutions provide more than one service. The presence of operations in multiple verticals can create conflicts between them. Such conflicts are often why virtual asset service providers (VASPs) misappropriate user funds. For instance, offering custody services for users while running lending and investing arms breeds conflict.

Many platforms have ended up utilising third-party funds in custody for their own lending and investing practices to boost profits. Eventually, such schemes come burning down, leading exchanges to lose user funds irrecoverably.

Therefore, enterprises must not conduct conflicting duties due to the high risks associated with operating certain verticals in tandem. Beyond that, enterprises must create and enforce robust policies aimed at preventing risky activities.

Technology and Security

With cyber threats being one of the biggest pain points to companies dealing with digital assets, companies must effectuate cybersecurity measures to protect client assets and sensitive data. 2023 has seen a whopping $1.7 Bn worth of digital assets stolen by cybercriminals globally.

Enterprises must safely handle user private keys and other sensitive data, including personal and financial information. It requires that enterprises utilise sophisticated encryption technologies and obtain needed cybersecurity certifications. Also, enterprise software should undergo penetration testing from reputable Web3 cybersecurity firms and encourage continuous bug bounty programs.

Compliance with Authorities

While India is yet to witness a fully developed digital asset regulatory framework, a handful of legislations presently uphold the integrity of its financial market and the safety of the users in the space. Institutions must adhere to these regulations to safeguard themselves and their users from persistent threats.

VASPs can also look at the legislation issued by other jurisdictions and emulate what their counterparts in those jurisdictions do. They must simultaneously follow international frameworks to prevent criminal fund flows through their platforms.

One such framework is the Crypto Travel Rule issued by the Financial Action Task Force (FATF), providing guidelines for deploying know-your-customer (KYC), enhanced due diligence (EDD), anti-money laundering (AML), and countering the financing of terrorism (CFT) protocols.

Disaster Recovery

At times, no amount of security or compliance measures can prevent exploits. Cybercriminals utilise cutting-edge measures that can penetrate the best of defence. Moreover, corrupt governance within organisations is just one decision away. VASPs must consider unforeseen circumstances and stay prepared.

To that end, they must insure themselves against such happenings. In the unfortunate events of unstoppable fund losses, insurance will help enterprises cover their losses and clients recover their assets. In instances when ventures turn bad and misappropriate assets, clients can still recover their funds. They must also set up effective communication protocols and detailed plans of action to continue essential functions during disastrous events.

Charting the Course: Regulatory Considerations for Digital Asset Custody in India

Operating custody services in India also requires a look at the regulatory scenario.

  • 2020: The Supreme Court of India overrules the Reserve Bank of India’s (RBI) blanket ban on digital assets, acknowledging their existence and legality in 2020.
  • 2022: The Finance Act of 2022 gets implemented, introducing a 30% income tax on income received or gains acquired through digital assets.
  • 2022: The Finance Act of 2022 also introduces 1% TDS (Tax Deducted at Source) at 1% of transacted value when digital assets are sold or traded.
  • 2022: The Indian Computer Emergency Response Team (CERT-In), an offshoot of the Ministry of Electronics and Information Technology, issues KYC – related guidelines for VASPs. They state that VASPs must record user KYC details, construct their financial activity effectively, and store the details for five years.
  • 2022: The Advertising Standards Council of India (ASCI) enforces advertising guidelines dictating that VASPs and asset issuers must highlight the high risks associated with digital assets and not mislead investors about returns while promoting their products and services.
  • 2023: The Ministry of Finance brings digital asset transactions under the scope of the Prevention of Money Laundering Act (PMLA), mandating VASPs to report suspicious transactions to the Financial Intelligence Unit – India (FIU-IND).

As these mandates and guidelines presently govern the Indian jurisdiction, the Indian digital asset landscape awaits complete clarity through digital asset-specific legislation. Recent developments suggest a bill making its way in 2025 at the earliest.

This delay can be considered a challenge to the Indian digital asset ecosystem. Despite stalling to provide regulatory clarity over the asset class, the government is pushing the adoption of its Central Bank Digital Currency (CBDC) by calling it a safer alternative to decentralised digital assets. The Ministry of Finance says so in the document titled CENTRAL BANK DIGITAL CURRENCY (DIGITAL RUPEE – e₹), hampering the validity of digital assets.

Nevertheless, there are some merits to the delay. The government needs to prepare itself to handle large-scale adoption and maintain the integrity of the Indian financial system. The Ministry of Finance issued a press release in February 2023 stating its investigations into VASPs involved in laundering money.

Around Rs 936 Cr worth of digital assets were either seized or frozen by the government, showing how unchecked digital asset usage can result in money laundering and crime financing. Thus, the enforcement of the PMLA by various agencies, including FIU-IND, is highly needed and beneficial.

Embracing the Future: Building a Secure and Thriving Digital Asset Ecosystem in India

As India witnesses a burgeoning digital asset ecosystem, taking it to new levels of adoption requires it to be underscored by security. Achieving that needs institutional and enterprise players to utilise robust custody solutions. Partnering with established and reputed custody solution providers is of utmost importance.

Custody platforms like Liminal are making strides in safeguarding digital assets and offering banking-grade custody, elevating Web3 storage practices to the standards of traditional finance custodians. Liminal provides tailored custody solutions for your business needs aimed at easy scalability as you grow. Its wallet infrastructure and white-label use cases let you effortlessly implement the secure storage your operation needs and make the most out of the vibrant Web3 landscape.

January 5, 2024

At Liminal, we have continuously pushed forth the narrative that secure digital asset custody hinges on a robust underlying blockchain ecosystem. 

That’s why we continuously prioritise partnering with established blockchain protocols to build native infrastructure for web3-focused organisations to establish safe custody and compliant operations inherently. 

Expanding our suite of supported blockchains, we are excited to integrate XRP Ledger, a high-performance, decentralised and distributed blockchain, into our custody and wallet platform.

This integration will allow builders to plug their XRP-based assets into Liminal powered multi-sig custody featuring compliance checks, policy-controlled transaction processing and deployment of institutional-grade security measures. 

Liminal Bolsters XRPL Security for a Trusted Ripple Ecosystem

Our XRPL integration will pave the way for secure custody of a diverse range of XRP-powered assets, including the native XRPL token (XRP) itself. 

This strategic move expands our custody capabilities, enabling institutions and individuals to create powerful applications around custody and tokenisation and securely store and manage their XRP tokens within our robust infrastructure.

Fortress-like Security: Leverage Liminal’s multi-layered security architecture to protect your XRP tokens against unauthorised access and malicious activities.

Granular Control: Define and enforce user permissions for seamless asset management, ensuring only authorised individuals can access and manage XRP.

Multi-signature Wallet Governance: Share control and responsibility for secure custody with multi-signature wallet functionality, promoting transparency and accountability.

Real-time Compliance Monitoring: Maintain regulatory compliance with automated reporting and monitoring of XRP transactions on the XRPL network.

DeFi Connectivity: Connect your multi-party wallet with our institutional Defi wallets MetaMask and Wallet Connect directly from our dashboard to access dApps.  

Our XRPL integration extends beyond secure storage. Our platform offers a comprehensive suite of features to empower institutions and individuals:

Streamlined Workflows: Automate routine tasks and manage XRP transactions efficiently with customisable workflows.

Enhanced Liquidity: Leverage Liminal’s institutional network and integration with leading DeFi protocols to access deeper liquidity pools for XRP.

Scalable Solutions: Our infrastructure is built to handle high volumes of XRP transactions, ensuring smooth operations even during peak activity periods.

Why we integrated XRPL?

About XRPL

XRPL is a high-performance, open-source Layer-1 blockchain built on the Federated Byzantine Agreement (FBA) consensus algorithm, enabling fast (3-5 seconds) and secure peer-to-peer transfer of diverse assets like XRP, fiat currencies, stablecoins, and NFTs. 

Its permissionless access and robust functionality, including native token issuance and escrow, empower developers to build innovative Web3 applications like cross-border payments, DeFi protocols, and NFT marketplaces. XRPL’s growing ecosystem and proven track record make it a powerful platform for shaping the future of decentralised finance and beyond.

Use-Cases of XRPL

  • Fast, borderless payments: Send and receive assets (XRP, fiat, NFTs) globally in seconds with low fees. Ideal for remittances, treasury payments, payroll, and cross-border transactions.
  • Flexible asset tokenisation: Issue any kind of token (fungible, stablecoin, NFT, CBDC) on the XRPL. 5,400+ currencies already issued as of May 2022.
  • On-chain DeFi: Access decentralised financial services like trading on the native DEX directly from your XRP Ledger wallet.
  • CBDC integration: Enable efficient and secure interoperability between CBDCs and other payment systems using XRP Ledger tokenisation.
  • Stablecoin issuance: Financial institutions can issue and manage reliable, compliant stablecoins on the XRP Ledger.

The XRP Token

XRP, the native digital asset of the XRP Ledger, empowers a seamless Web3 experience. From instantaneous global payments with minimal fees to decentralised exchange (DEX) trading and NFT purchases, XRP fuels a vibrant ecosystem for developers and users alike.

Accessible to anyone with a wallet and internet connection, XRP offers:

Frictionless cross-border payments: Transfer XRP across continents in seconds, ideal for remittances, treasury operations, and global transactions.

Native DEX integration: Trade a wide range of digital assets directly on the XRPL DEX, leveraging XRP’s liquidity and speed.

NFT gateway: Purchase, sell, and hold NFTs on the XRPL, unlocking an innovative and secure platform for digital collectables.

Get Started with XRPL Onboarding

XRPL is leading the charge when it comes to creating an effective payment layer for institutions, building the most practical model for a blockchain. 

We are excited to work with protocols working on XRPL native technology and create the next best apps in payment, tokenisation and decentralised finance

Join Liminal and access a consolidated wallet infrastructure framework to secure and scale your XRPL assets.

January 2, 2024

Hello world, it’s that time of the month when we share the biggest security breaches in the world of Web3 through our Security and Regulatory Newsletter. 

Liminal believes in optimising security and custody practices globally across the Web3 industry. Through our monthly newsletter, we highlight incidents pertaining to security, regulations and compliance that have happened in the past month and how one can follow better security practices to safeguard their digital assets.


We will also highlight regulatory changes that might have happened globally, which were significant to the overall ecosystem.

Dive in and get a detailed analysis of everything security and regulation in the domain of web3 with Liminal’s Monthly Security and Regulatory Newsletter.

Web3 Security Compromises in December

Wallet gets phished for $4.4 million

Someone had a not-so-fun end to the year when they fell victim to a phishing attack and had around 275,700 LINK drained from their crypto wallet. Those tokens are priced at around $4.4 million.

The attack was perpetrated by the Pink Drainer group, which had recently compromised the Twitter account of Compound Finance to try to lure its more than 250,000 followers into authorising the malicious drainer. It’s not clear if that’s how this wallet was drained, however, as Pink Drainer uses numerous strategies to attract victims.

Fraudsters steal more than $25 million in “AI-powered” crypto ponzi

Two fraudsters capitalised on the hype around both cryptocurrency and artificial intelligence, advertising an “artificial intelligence automated trading bot” that they promised would earn large returns for their investors. Instead, however, the fraudsters spent the money on themselves, paying for private chartered jet flights, luxury hotel accommodations, private mansion rentals, a personal chef, and private security guards.

In addition to pulling off the original scam, the fraudsters also came up with a fake investigative agency called the “Federal Crypto Reserve”, where they directed victims who were seeking to recover their losses.

The scammers were charged with wire fraud, money laundering, and obstruction

OKX DEX suffers $2.7 million hack

OKX DEX is a service by OKX that aggregates decentralised exchanges (or DEXes) to help users access features and prices across multiple projects. On December 12, an attacker appeared to gain administrative control of the DEX’s smart contract. They upgraded the contract so that they could transfer tokens to themselves, then proceeded to do exactly that until they had stolen around $2.7 million in various cryptocurrencies.

It appears the attacker was able to gain access to the smart contract admin key, which gave them the ability to upgrade the contracts to enable malicious functionality.

OKX announced that they would reimburse the losses and pursue legal action against the exploiter.

Web3 Regulatory Practices for December

Spain’s Crypto-Asset Declaration Regulation:

Jurisdiction: Europe (Spain)
Regulatory Body: Agencia Tributaria (Spanish Tax Administration Agency)
Change: Mandatory declaration of crypto-assets held on non-Spanish platforms for Spanish residents.
Details: The regulation applies to individuals with a balance exceeding US$55,000 in crypto assets. It is set to be effective from January 1, 2024.


Kenya’s Capital Markets (Amendment) Bill:

Jurisdiction: Africa (Kenya)
Regulatory Body: National Assembly’s Finance and National Planning Committee
Change: Proposal to bring crypto trading under taxation.
Details: The bill seeks to tax crypto exchanges and digital wallets, allowing the Kenya Revenue Authority to tax Kenyans holding crypto assets.


United States’ Deploying American Blockchain Act of 2023:

Jurisdiction: North America (United States)
Regulatory Body: House Committee on Energy and Commerce
Change: Unanimous passage of a blockchain bill.
Details: The bill focuses on deploying blockchain technology for national security and economic stability. It awaits a full house vote.

Stay #LiminalSecure because it is the new definition of security.

December 29, 2023

Traditional cold storage solutions were infamous for their operational hurdles and limited accessibility, dragging down asset liquidity and leaving institutions with far more redundancy, limiting scalability at the cost of increased security. 

But they continue to add value, given that they add an uncompromised layer of private key protection to keep a significant portion of their portfolio untouched. 

And that’s what is changing for key infrastructure-building platforms. The next generation of protocols are switching to a more robust style of managing cold wallets, one not restricted in their natural form but expansive in functionality. 

At Liminal, we have matured our cold wallet infrastructure to relay a fully equipped, non-custodial, customisable, compatible, and compliance-led solution, which will be used extensively by the Telos chain. 

Liminal Takes Cold Wallet Security to the Next Level, Bringing Telos Chain Onboard

At Liminal, we’re not just pushing the boundaries of institutional-grade security; we’re shattering them. 

To eliminate the native usage of cold wallets and make them fortified, we have engineered our cold wallets to work faster and more securely on an institutional scale. 

Think customised workflows for seamless integration with hot wallets, intricate compliance and risk monitoring, and faster transaction processing – all under the impenetrable shield of our multi-party computation (MPC)-powered cold wallet infrastructure. 

This is the future of treasury security, and we’re thrilled to announce that Telos, a prominent and continuously evolving Layer-1 EVM chain, has chosen Liminal to safeguard its holdings within our cold wallet infrastructure.

Telos Looking To Expand Cold Storage Transactions

For Telos to deliver speed and efficiency in transactions and keep a low-risk strategy, managing cold wallets was becoming a logistical and security problem. They needed a solution that was secure, agile, and built for the future of Web3.

With Liminal, Telos found the perfect fit between flexibility, elimination of manual execution and putting assets to better and a bank-grade treasury experience. Here’s how:

Fort Knox-level security: Liminal’s MPC-powered wallets ensure the highest level of security for Telos’ TLOS and other assets, eliminating single points of failure and malicious insider threats.

Risk and compliance on autopilot: Our built-in firewall monitors all transactions, automatically flagging suspicious activity and ensuring regulatory compliance.

Staking from the cold: Telos can now seamlessly plug into our institutional staking solution, maximising their asset security while generating passive income.

Governance made easy: Liminal facilitates faster and more secure key management for Telos’ governance processes, ensuring smooth distribution and recovery.

Frictionless asset movement: Policy-controlled asset movements provide Telos with granular control over their treasury, while real-time reporting keeps them informed at every step.

After our recent addition of the Telos chain in our custody and wallet infra, we are now pushing hard to develop an even greater collaboration with the team to foster their infrastructure and give them more power to expand their ecosystem. 

Forward-thinking Institutions Breaking Free from Cold Wallet Limitations With Liminal 

The future lies in cold storage solutions that go beyond just bolstered security. Today’s Web3 pioneering institutions must prioritise operational efficiency and liquidity by tackling issues like lack of interoperability, slow signing delays, and inconsistencies in multi-approver setups. Only then can institutions truly gain a robust, agile, and transparent grip on their crypto assets.

Liminal’s partnership with Telos is a fine example of how mainstream chains are modifying their cold wallets to operate on a practical level, powering policies like — whitelisting, roles and permissions, and automation — to add even more layers of protection.

December 21, 2023

At Liminal, we have always believed that the extent of pushing secure custody of digital assets is directly proportional to enhancing their underlying blockchain infrastructure. 

Interoperability has become a core integration parameter for custody platforms now, as the demand for alternate chains (their ecosystem and community participation) has surpassed the threshold for adoption. 

Adding to our extensive list of blockchains supported, we are introducing Telos, a third-generation blockchain platform, into our custody and wallet infrastructure, providing safe custody, policy-led workflow, multi-party wallet governance and compliance monitoring to protocols and institutions building on the Telos chain. 

Enabling Secure Custody & Optimised Asset Management On Telos

Our integration of the Telos chain is targeted at all our existing and new partners looking to bring their existing treasury of Telos-supported assets or the native token TLOS itself under our secure infrastructure. 

Secure and Efficient Treasury Management

Utilise Liminal Custody’s secure and robust MPC and Multi-Sig-powered wallet infrastructure to store, process, and govern your treasury with unparalleled authority. Our platform provides granular control over asset management, ensuring that every transaction adheres to stringent security protocols and multi-party authorisation requirements.

Policy-Driven Automation for Optimal Efficiency

Leverage Liminal’s automation workflow to streamline your Telos asset management processes. Define policy-based transaction processing rules to automate routine tasks, reduce operational overhead, and enhance overall efficiency. Our platform empowers you to tailor your asset management workflows to align with your specific risk tolerance and regulatory requirements.

Vigilant Risk and Compliance Monitoring

Mitigate potential risks and ensure compliance with Liminal Custody’s comprehensive risk and compliance monitoring tools. Our platform monitors your wallet and transactions for any anomalies or potential violations, allowing you to take immediate action to protect your funds and adhere to regulatory standards.

Seamless Integration with Telos and DApp Ecosystem

Connect to a vast array of native Telos and mainstream dApps with our MMI and Wallet Connect integration. This seamless integration will facilitate you to capitalise on your Telos asset holdings by accessing a wide range of DeFi protocols 

“The integration of Telos into Liminal Custody’s multi-chain ecosystem is a significant step forward as we move towards building a highly secure, regulated, automated and interoperable infrastructure platform. Telos’ innovative architecture and growing community make it a compelling platform for institutional adoption, and we are excited to empower Telos-based protocols and institutions to unlock the full potential of their digital assets.”

Mahin Gupta

Founder, Liminal

Why we integrated Telos Chain?

About Telos

Telos is a pioneering Layer-1 blockchain network, harnessing the power of Delegated Proof of Stake (DPOS) consensus to deliver unparalleled performance, scalability, and cost-efficiency. Its robust EVM (Ethereum Virtual Machine) compatibility(tEVM) empowers developers to seamlessly port and deploy smart contracts, leveraging Telos’ superior speed and cost-effectiveness.

Key Features of Telos 

Front-Running Prevention

Two blocks per second and fixed gas fees eliminate front-running opportunities. Telos’ governance penalises validators who prioritise transactions for personal gain.

Enhanced Scalability

The rent model optimises resource usage and transaction costs. Telos achieves a block time of 0.5 seconds, transaction fees of 1/1000th Ethereum’s cost, and transaction capacity of 10,000 transactions per second.

Micro Transaction DeFi

Scalable structure enables micro-transactions, empowering users to engage in DeFi activities with minimal transaction fees. Telos allows users to transact for as little as $1.

Advanced Governance System

A robust on-chain governance system empowers token holders to participate actively in the network’s decision-making process. Includes enhanced voting features, configurable smart contracts, token holder involvement in proposal drafting and voting, and strict code review and multi-level approval processes for governance changes.

The TLOS Token

TLOS is the native token of the Telos blockchain, serving as the fuel for the network’s operations and rewarding users for staking their TLOS. TLOS plays a multifaceted role within the Telos ecosystem:

Staking Rewards: Users earn additional TLOS by staking their tokens, incentivising them to contribute to the network’s security and stability.

Resource Staking: TLOS can be staked to secure resources such as CPU or NET, enabling users to run resource-intensive applications or lease these resources to developers.

Payment for User Transactions: Developers use TLOS to pay for network capacity, covering the costs of user transactions and activities.

Storage Payment: The upcoming dStor platform aims to establish TLOS as a payment method for storage services, potentially competing with providers like IPFS and Amazon.

Telos Ecosystem

In its short span of 5 years, Telos has managed to build a credible network of dApps from DeFi applications like T-Swaps, T-Starter, Alcor.exchange, to gaming apps like Landbox, Elixir, Xpell, from exchange support to launchpad, oracles and metaverses. 

Telos’ Total Value Locked (TVL) has demonstrated remarkable resilience amidst market fluctuations. Despite reaching an all-time high of over $200 million in February 2022, Telos’ TVL has maintained a steady level of around $24 million. This stability highlights the network’s strong fundamentals and its ability to attract and retain institutional investment.

Get Started with Telos Onboarding

Telos stands as a cornerstone of Web3 innovation, providing a robust, scalable, and developer-friendly platform for building the next generation of decentralised applications. 

Join Liminal and access a regulated and automated custody and wallet infrastructure to build on Telos.

December 15, 2023

The digital asset landscape is witnessing a remarkable surge in adoption, driven by the growing recognition of cryptocurrencies as a viable asset class to invest in. This surge, however, is accompanied by a heightened demand for robust and transparent crypto trading platforms that can cater to the evolving needs of investors.

Retailer investors at large look at a few standard parameters to pick before committing to a long-term investment cycle, namely flexibility, bank-grade asset security, self-custodial access of wallets, transparent reporting and investing expertise. 

Most traditional investment platforms seldom fail to comply with major institutional-grade security protocols, custody of assets at large volume and efficient processing of transactions. 

At Liminal, we are committed to primarily eliminating the functional problems faced by investing platforms, helping them scale their wallets and run a streamlined operation coupled with top-notch compliance and security. 

Bringing Regulated Custodial Infrastructure In OpenFintech’s Investing and Trading App

Working closely with trading firms and exchanges since inception, we are again stepping up the game to procure an exceptional institutional-level wallet experience for our new partner-in-custody. 

We are elated to introduce our new custody client, OpenFintechSolutions, a pioneering firm developing a transparent and secure cryptocurrency investment platform. 

In a bid to democratise crypto investing and empower retail investors, OpenFintechSolutions is spearheading a revolutionary platform designed to streamline crypto investment and portfolio management. 

Recognising retail investors’ diverse needs and risk profiles, OpenFintechSolutions has meticulously crafted a solution that caters to a broad spectrum of users.

“We are thrilled to join forces with OpenFintechSolutions, a company that shares our vision of making crypto investing accessible, secure, and scalable to all. By combining Liminal’s robust custodial infrastructure with OpenFintech’s innovative platform, we are creating a powerful solution to empower retail investors to navigate the crypto landscape and achieve their financial goals confidently.”

Mahin Gupta

Founder, Liminal

Addressing Security Concerns and Enhancing Asset Management Capabilities

OpenFintech’s primary challenge was finding a secure and scalable wallet infrastructure solution that could support the leading chains and tokens to expand its client asset offerings. 

Liminal’s consolidated infrastructure, backed by industry-leading security protocols and certifications, provided the perfect solution to address OpenFintech’s concerns.

OpenFintechSolutions has signed up for the following services to procure the best possible setup for their crypto investment platform:

  • Regulated Custody: OpenFintechSolutions has integrated Liminal’s institutional-grade custody solution, utilising both our hot and cold wallets to safeguard digital assets with the utmost diligence. This regulated custody approach ensures compliance with industry standards and regulatory requirements, providing OpenFintech’s clients with peace of mind.
  • Institutional Staking: To maximise the utilisation of their digital assets and generate passive income streams, OpenFintech will employ Liminal’s cold-wallet staking function. This solution enables OpenFintech to participate in staking protocols directly from their secure cold storage infrastructure, earning rewards without compromising security.

OpenFintech Users Can Invest with Confidence, Backed by Liminal’s Custodian Badge

Solving the first and foremost problem for OpenFintech users by providing them with the badge of working with a CCSS-compliant custodian, we are taking their infrastructure one stage higher. 

Powered by our MPC-powered wallets, automation-enabled liquidity management, firewall monitored risk and compliance adherence, we are confident that OpenFintechSolutions will be able to present Flex Invest 100+(their key product) to their users with utmost confidence. 

This partnership will showcase our extensive wallet infrastructure deployment and how well it aligns with institutions establishing secure custody of their users’ assets.

December 11, 2023

As a regulated custodian, offering formalised and monitored asset custody to institutions registered under a defined jurisdiction has become a pivotal point in pushing the envelope of virtual asset security. 

We are actively pursuing accreditation from reputable regulatory bodies to penetrate the burgeoning markets in emerging jurisdictions. This strategic approach will establish Liminal as a credible and qualified custodian, enabling us to provide comprehensive custody and wallet infrastructure services to both regional institutions and enterprises seeking to develop their operations in these rapidly evolving markets.

A Step Towards FSP License

Moving to the most progressive state of Abu Dhabi with a vision of becoming a key digital asset custodian, we are stoked to announce that we have received an In-Principle Approval from the Financial Services Regulatory Authority(FSRA), a governing body in ADGM to establish progressive financial services environment. 

This IPA marks a crucial milestone in our journey as we look to expand our custody services in the region of MENA and work closely with institutions to offer them our advanced suite of wallet infrastructure, white label solution, automation workflow, secure staking, compliance integrations and more. 

Following the successful acquisition of our first custody license, TCSP, in Hong Kong, this impending second custody license marks a definite win for Liminal. 

It firmly establishes our position as a disruptive force in the custody sector, demonstrating our commitment to addressing the most critical challenges institutions face in digital asset management, security, and scalability.

Navigating the Rigorous Licensing Process

Obtaining an FSP is a rigorous and complex process that involves extensive due diligence and adherence to stringent regulatory requirements. 

The FSRA meticulously evaluates the applicant’s business model, risk management practices, operational capabilities, and compliance infrastructure. This comprehensive assessment ensures that only the most qualified and secure entities are granted the FSP, safeguarding the interests of investors and promoting the integrity of the digital asset ecosystem.

Advancing Liminal’s Regional Presence

Liminal’s path to securing the IPA was paved by a deep commitment to meeting all the FSRA’s exacting standards. We demonstrated unwavering dedication to operational excellence, robust risk management frameworks, and a comprehensive compliance program. 

Our team of experts worked tirelessly to address every aspect of the FSRA’s requirements, ensuring that the platform met the highest international security, governance, and transparency standards.

The IPA is not merely a formality; it represents a testament to Liminal’s persistent commitment to providing institutional-grade custody services that meet the evolving needs of the digital asset industry. 

With the IPA in hand, we are well-positioned to expand product offerings, establish strategic partnerships, and further solidify our position as a leading digital asset custody solutions provider.

December 10, 2023

The entire ecosystem of digital assets has been fundamentally shaped and supported by platforms providing services like swapping, trading, bridging, ramp, P2P, and OTC desks. The advanced functionality, security, and user-friendliness they offer to everyday users are instrumental in driving trust and adoption within the industry.

In the endeavour to establish digital currencies as a viable and even superior asset class for the next generation, laying the groundwork for a seamless transaction flow is essential. This challenge is amplified in regions with limited banking infrastructure, such as Africa, where users need help accessing even basic financial tools. 

At Liminal, we are pioneering this exact use case from the get-go, identifying problems in transactional flow, asset management, wallet governance, convenience and interoperability to build a robust infrastructure that allows institutions to run smooth operations, install 

bank-grade custody and advance their wallet security, all from a unified hub.  

Liminal Partners with Scalex to Deliver a Stable and Interoperable Crypto-Fiat Exchange Experience

Our inherent commitment to crafting secure, scalable, and sustainable solutions for capital-intensive investment platforms has always been guided by a multi-layered and network-agnostic approach.

Taking this approach to serving the African market, we are excited to announce our new partner-in-custody, Scalex. Scalex is a leading ramp infrastructure for crypto and fiat, securing transactions and expanding to newer solutions. 

Scalex has built a rich infrastructure solution stack, including a crypto-to-fiat and fiat-to-crypto bridge, peer-to-peer trading, an on and off-ramp solution to connect to the world of DeFi, an easy-to-implement API and SDK environment, and a large-volume trading desk. Scalex’s motto is to offer a stable and secure platform for the African community to trade in digital assets, add more power to the functions of organisations throughout the world with the highest throughput and confidence.  

Scalex, looking to elevate its security game and find a more infrastructurally stable wallet solution that supports a wide range of chains and assets, came across Liminal and found us to be the most noteworthy provider of wallet-as-a-service with a rich stack of security, compliance, and automation integrations to simplify their user onboarding journey in Africa.  

Leveraging our deep expertise in collaborating with trading platforms, we are now strategically expanding our reach into uncharted territories like Africa, aiming to establish a strong presence and cultivate knowledge around embedding enhanced security protocols into existing institutional applications. Our partnership with Scalex, a pioneer in revolutionizing secure and fast trading in Africa, will serve as a springboard for Liminal to enter this fast-growing market, engage with a diverse customer base, foster collaboration, and identify evolved vulnerabilities within ramp infrastructures, ultimately paving the way for seamless integration of our product into this dynamic use case.

Rahil Shaikh

AVP, Product & Reliability Engineering, Liminal

Liminal Fortifies Scalex with a Secure Multi-Chain Wallet Infrastructure

The key problem statement for Scalex was to address their concerns in infrastructure stability with growing solutions and the number of transactions and find an institutional wallet infrastructure solution that supports the leading chains and tokens in the same security layer to multiply their asset offering to their users as well. 

Scalex will be solving these particular problem statements by implementing the following of Liminal’s services:

  • Industry-Leading Security Protocols: Scalex will utilise our wallet infrastructure for their security protocol layer, made possible by acquiring leading certifications such as ISO, SOC 2 and CCSS. 
  • Multi-Chain Support: Scalex will use our wallet infrastructure to expand its treasury with new assets it can now secure and offer to its users for trading. 
  • Automation Engine: Scalex will power their wallets, processing redundant transactions into a policy-controlled mechanism to improve the speed, reduce cost and give better trading experience to its users. 

Defining An Improved Infrastructure for Scalex to Onboard 10 Million Africans Into Crypto

After working with exchanges and trading platforms in the Indian and Southeast Asia region, we are now excited to work with Scalex, giving them a dedicated experience of setting up wallets, setting the right policies, integrating a maximum number of supported chains and assets and reduce their operational cost to help them deliver on their promise of onboarding 10 million Africans into Web3 driven solutions by 2030.  

December 8, 2023