Bank-Grade Smart Accounts
for Institutions

Closing the trillion-dollar security gap: institutional controls on public Ethereum. The Ethereum Foundation has called for trillion-dollar-grade security to enable institutional adoption—we provide the authorization infrastructure to make it possible. Multi-level approvals, real-time compliance screening, and comprehensive audit trails built for financial institutions.

Built by

Nethermind

Core Ethereum client engineers

The Institutional Infrastructure Gap

1

Sequential Approval Layers

Operations → Compliance → Executive. Each level must complete before the next begins. Not parallel approval—staged review with isolation between layers.

2

Independent Isolation

Each level operates separately. Breach of operations doesn't compromise compliance credentials. Breach of Level 2 doesn't give access to Level 3.

3

Amount-Based Security

Same account handles $1,000 and $10M with appropriate thresholds. $5k needs 2 approvals, $5M needs 9 approvals across 3 levels.

SYSTEM ARCHITECTURE

Sequential Approval Architecture

Defense in depth: transactions progress through isolated approval layers sequentially. Each level must complete before the next begins.

Level 1: Operations

Day-to-day review

Operations staff approval with maker-checker workflows

1

Time-Locked Progression

Review window

Fraud detection window between levels

2

Level 2: Compliance

External providers

Independent compliance review (Chainalysis, Elliptic)

3

Level 3: Executive

C-suite authorization

Final executive approval for high-value transactions

4

Execution

Transaction executes

Final settlement on Ethereum after all levels complete

5
5
Security Layers

Independent checkpoints verify every transaction

1-48
Hour Windows

Risk-based fraud investigation delays

100%
Automated

Real-time OFAC/AML compliance screening

Why Institutions Need Different Architecture Than Standard Multisig

Standard multisig serves consumer wallets and DAOs well. But regulated financial flows require different architecture: sequential approval layers, independent isolation, and amount-based thresholds.

Sequential Review

Regulated flows need staged approval: operations → compliance → executive. Not parallel signers—sequential layers where Level N must complete before Level N+1 begins.

  • • Operations reviews first
  • • Compliance reviews second (after operations completes)
  • • Executive reviews third (after compliance completes)
  • • Each level operates independently

Independent Isolation

Banks require checkpoints where breach of one doesn't compromise others. Operations staff can't access compliance credentials. Level 2 breach doesn't give access to Level 3.

  • • Each level has separate credentials
  • • Compromise operations ≠ compromise compliance
  • • Different organizations per level
  • • Isolation prevents cascade failures

Amount-Based Rules

Institutional controls require different security for $1,000 vs $10M. Same account adapts: $5k needs 2 approvals, $5M needs 9 approvals across 3 levels.

  • • Dynamic thresholds based on transaction value
  • • More approvals for higher amounts
  • • Additional levels for high-value transactions
  • • Configurable per institution

These aren't flaws in standard multisig—they're different design goals.

Standard multisig serves consumer wallets and DAOs perfectly. But banks need defense in depth: sequential layers, isolation, and amount-based thresholds. Learn why →

Learn how banks actually secure high-value transactions →

What's Missing from Current Blockchain Infrastructure

While early tokenization efforts are underway, scaling to institutional volumes requires banking-grade authorization that general-purpose multisig solutions aren't designed to provide. These gaps aren't flaws—they reflect different design goals.

FeatureSafe / Standard Multisig1TrillionSecurity
N-of-M threshold signing
On-chain transaction history
Sequential approval layers
Independent isolation between levels
Amount-based dynamic thresholds
Time-locked progression between levels
Veto power at any level

Why General-Purpose Multisig Isn't Enough for Regulated Flows

Standard multisig architectures (including Safe) treat all signers as equal participants with immediate execution once thresholds are met. This design serves consumer wallets and DAO governance well—but regulated financial flows require role hierarchies, pre-execution compliance screening, and configurable time delays.

These capabilities demand fundamentally different architectural primitives. Our solution implements institutional requirements at the protocol level, enabling banks to meet regulatory obligations while using public Ethereum settlement.

See detailed technical gap analysis →

Real-World Transaction Flows

Example: $50M Wire Transfer to Offshore Vendor

A step-by-step walkthrough showing how institutional controls prevent fraud while enabling efficient operations:

1

Operations Clerk Initiates (Maker)

Submits transaction details: amount, recipient, purpose. Transaction enters pending state.

2

Manager Approves (Checker)

Reviews amount, recipient details, and business justification. Cannot be the same person who initiated.

3

Compliance Screening (Automatic)

OFAC sanctions check against recipient. AML risk scoring. Flags high-risk jurisdictions.

4

24-Hour Delay Window

High-value transaction triggers mandatory review period. Fraud team can investigate. Transaction can be cancelled if suspicious.

5

CFO Final Authorization

Senior executive reviews high-value transfer. Confirms business necessity. Provides final approval.

Wire Executes with Full Audit Trail

Transaction settles on-chain. Complete record of all approvals, screening results, and timing logged for regulatory examination.

Requires sequential approval architecture

Standard multisig executes immediately once threshold is met—all signers approve in parallel. This workflow needs sequential layers: operations completes before compliance begins, compliance completes before executive reviews.

Asset Management

$25M USDC purchase for treasury allocation

Portfolio manager initiates buy order → Compliance verifies no sanctioned counterparties → Senior trader approves execution price → 2-hour review window for risk committee → CFO authorizes if allocation exceeds threshold → Trade settles with complete attribution for Form PF reporting.

Custody Services

$100M client withdrawal request

Client requests withdrawal via authenticated portal → Custody ops verifies request authenticity → Compliance screens recipient wallet (no prior sanctions flags) → Senior custody officer approves → 24-hour fraud review → Withdrawal executes to whitelisted address with full audit trail for client reporting.

Payroll & Vendor Payments

$5M monthly contractor payroll in stablecoins

HR uploads payment batch (500 recipients) → Finance verifies amounts match approved invoices → Compliance screens all 500 recipient wallets → Any flags trigger manual review → Batch executes with individual attribution for each payment → Export to accounting system (QuickBooks/SAP format).

DeFi Protocol Operations

$200M liquidity pool rebalancing

Protocol treasury manager proposes moving $200M between Aave/Compound → Risk team models exposure limits → Compliance verifies protocol contracts (audited, no sanctions) → Multi-sig governance (5-of-9) approves → 48-hour timelock for community review → Rebalance executes with gas optimization.

Multi-Level Sequential Approval for Institutions

The first blockchain account architecture that implements banking-grade defense in depth: isolated approval layers, amount-based thresholds, and time-locked progression.

Sequential Approval Layers

Feature 1

Configurable chain of independent checkpoints. Operations → Compliance → Executive. Each level must complete before the next begins. Not parallel signers—staged review with isolation between layers.

• Level N must complete before Level N+1

• Each level has separate signers and credentials

• Configurable 1-10 levels per account

Amount-Based Dynamic Configuration

Feature 2

Same account adapts based on transaction value. $5k needs 2 approvals at Level 1. $5M needs 9 approvals across 3 levels. Automatic routing through appropriate approval path.

• Dynamic thresholds per transaction amount

• More approvals for higher values

• Additional levels for high-value transactions

Time-Locked Progression

Feature 3

Review windows between levels for fraud detection. After Level 1 reaches quorum → wait 2 hours → Level 2 can begin. Provides breathing room for monitoring systems and compliance review.

• Configurable delays per level (0-72 hours)

• Fraud detection window

• Cancellation possible during delay

Veto Power at Any Level

Feature 4

Any signer at any level can immediately cancel the transaction. Not just waiting for threshold—explicit deny capability. If anyone denies, transaction stops immediately regardless of previous approvals.

• Explicit deny at any level

• Immediate cancellation

• Active review vs passive waiting

Ready to Bring Institutional Controls to Blockchain?