Why Enterprises Are Moving to MPC Wallets

The way enterprises manage digital assets is evolving. The industry is moving away from models that rely on custodians holding private keys on behalf of businesses, and toward solutions that give organizations more direct operational control with better security. This shift is especially visible in how companies approach wallet architecture and custody models.

From Sub-Custody to Direct Custody

Traditionally, enterprises have relied on custodians to store and manage private keys on their behalf, a setup known as sub-custody. Although this model was initially convenient and aligned with regulatory expectations, it came with tradeoffs which include reduced transparency, limited operational control, and reliance on the custodian’s availability and responsiveness.

This has led to a growing trend toward direct custody, where the enterprise itself controls the private key infrastructure and the signing process. Direct custody enables enterprises to have full authority over their assets, while preserving operational flexibility. However, direct custody only works well when the key management process is secure and resilient.

Upgrading from Private Key and Multisig Wallets

Many enterprises using direct custody still rely on wallets with outdated models like private key or multi-signature (multisig). These approaches present scalability, security, and usability challenges. Private keys are easy to misplace, difficult to share securely, and impossible to recover if lost. Multisig wallets often lack flexibility and are not supported across all blockchains.

MPC wallets resolve these limitations. By splitting the signing authority across multiple parties without ever reconstructing the full private key, MPC wallets eliminate the single point of failure. They also enable enterprises to define custom security policies, enforce approval workflows, and operate seamlessly across a broad range of blockchains.

Why Enterprises Are Moving to MPC

The adoption of MPC is being driven by two main factors:

1. Greater need for internal control: Enterprises want to manage wallets directly without relying on sub-custodians, especially for treasury and operational flows.

2. Operational resilience and security: MPC eliminates the need to ever store or transmit a complete private key. It also supports threshold-based signing, reducing the risk of insider threats or single point of compromise.

Versal’s MPC Wallet for Enterprise

Versal Vault is an MPC-based self-custody wallet built specifically for enterprises. Organizations can create wallets on 23+ blockchains and define detailed transaction policies that govern who can initiate, approve, and sign transactions under specific conditions.

Key features of Versal Vault include:

• MPC signing: Transactions are authorized using MPC, with key shares split between the enterprise and Versal. The private key is never reconstructed, reducing risk and eliminating single point of failure.

• Customizable approval workflows: Configure rules by transaction size, type, source or destination wallet, and risk profile. Approvals can happen through the dashboard or mobile app.

• Built-in compliance screening: Versal provides wallet and transaction screening out of the box and integrates with providers like Elliptic for sanctions and risk scoring.

• Unified audit and CRM: All wallet activity is logged, and accounts are tied to PII and transaction history, supporting Travel Rule compliance.

• Secure key refresh and recovery: Versal’s system supports regular key refreshes and maintains backup procedures for business continuity.

This setup balances strong security controls with the operational flexibility that enterprises require.

Secure Your Assets with Versal Vault

As enterprise use of digital assets grows, MPC wallets are emerging as the standard for secure, direct custody. Versal can help you make the transition. Get started by registering here, or contact us for a walkthrough of the platform.