How is my money stored in Blink?

Blink operates in two modes, and how your funds are stored depends on which mode you use.

Custodial Mode

Your funds are stored using a geographically distributed multisig cold storage system in independent, asymmetric jurisdictions. This means that your funds are secured by multiple private keys that are held by different trusted parties. The majority of the Bitcoin held in Custodial Mode is stored in cold storage, which is an offline method of storage designed to reduce exposure to online threats. A small percentage of the Bitcoin is kept in a hot wallet, which is connected to the internet and is used for faster and more efficient transactions.

Blink employs a range of measures to protect custodial funds. This includes using the latest security protocols and best practices, such as two-factor authentication, SSL encryption, and regular security audits. Additionally, Blink follows strict regulatory guidelines to ensure compliance with local laws and regulations, further enhancing the protection of your funds.

Non-Custodial Mode

In Non-Custodial Mode (powered by the Spark protocol), you hold your own private keys. Blink cannot access, freeze, or recover your funds — you are solely responsible for safeguarding your keys and backing them up securely.

Because you control your keys directly, your funds are not held in Blink's multisig cold storage system. The security of your funds depends on how you manage and protect your private keys.