Revamping its custody infrastructure using multi‑party computation tools has improved operational resilience and institutional‑grade safeguards.
Growing institutional interest in digital assets has intensified scrutiny of how exchanges manage custody and internal security. The following case study examines how one platform, operating in India’s expanding crypto market, strengthened its asset protection and governance controls — illustrating broader shifts in DeFi infrastructure toward enterprise‑grade cybersecurity and operational resilience.
In January 2026, to address increasing security and operational risks, cryptocurrency trading platform WazirX announced a major upgrade of its digital asset custody system.
The move came as the platform’s trading volumes grew, and its users expanded beyond retail investors to include organizations requiring more granular governance and transaction controls.
As activity scaled, WazirX wanted a framework that could enforce multi-party approvals, minimize exposure to private-key compromises, and support real-time oversight of asset movements — all without slowing down transaction throughput. Traditional wallet architectures had created bottlenecks and left limited flexibility for audit and policy enforcement, prompting a re-evaluation of the exchange’s risk controls.
To strengthen its infrastructure, the firm adopted enterprise-grade custody and transaction-management tools built around multi-party computation (MPC) technology. This approach divides each private key among multiple secure components, removing single points of failure. Other technical changes included:
- The introduction of transaction policies allowing layered approvals and threshold-based verification
- Integration of real-time monitoring dashboards for anomaly detection and compliance tracking
- Scalable infrastructure that supports additional blockchain networks without redeploying custody systems
According to the firm’s founder, Nischal Shetty, “Security and asset safety remain a top priority… we are continuously reviewing and strengthening our systems to reduce risk and improve resilience.”
The external technology provider involved in the upgrade, Fireblocks, noted that its custody platform enables digital asset institutions to automate governance controls and manage assets securely across multiple blockchains. It supports financial institutions, payment platforms, and asset managers operating within regulated environments.
The case study demonstrates how stronger custody frameworks and MPC-based controls can align crypto exchanges with institutional security expectations.
