The $XRP Ledger upgrades to delegated key controls.
Institutional custodians and payment processors have long faced a security trade-off: keeping master keys offline requires manual intervention for every transaction, slowing settlement; keeping keys online exposes the full account to compromise if a signing device is breached.
The new system splits the risk.
An operator can keep the master key in cold storage while granting a hot wallet only the power to, say, approve KYC'd customers or move funds within pre-set limits.
If the hot wallet is compromised, only those specific functions are exposed.
Institutional custodians and payment processors have long faced a security trade-off: keeping master keys offline requires manual intervention for every transaction, slowing settlement; keeping keys online exposes the full account to compromise if a signing device is breached.
The new system splits the risk.
An operator can keep the master key in cold storage while granting a hot wallet only the power to, say, approve KYC'd customers or move funds within pre-set limits.
If the hot wallet is compromised, only those specific functions are exposed.