Security and custody

Nothing here
moves alone.

Your shares sit at a licensed depositary, in an account that is not ours. The keys that can move anything are split across separate people, machines and countries, and no single one of them is ever enough.

Where things sit

Three things,
three separate places.

A balance on bytblock is not one pile of money. It is a share, a reserve and a key — and the whole design is about keeping them apart.

The share

At a licensed European depositary

Bought on the Bucharest exchange and registered to a segregated client account. Segregated means it is not on bytblock's balance sheet and never becomes bytblock's property, in good times or bad.

  • Client account, not a house account
  • Never lent, never pledged, never rehypothecated
  • Reconciled against the chain every hour
See the reconciliation

The reserve

Cash and short-dated government paper

What stands behind BYT-RON, BYT-EUR and BYT-USD is held at a regulated European institution under safeguarding rules, separate from bytblock's operating money.

  • Safeguarded, not commingled with company funds
  • Redeemable at par, at any hour
  • Composition published, not summarised
See what backs each token

The key

Split, and never whole

A key that can move tokens is generated in pieces and never exists complete — not on a laptop, not in a data centre, not in one country. Signing takes a quorum of holders who do not share an office.

  • Hardware security modules, geographically apart
  • Threshold signing, with an independent participant
  • Every signature logged, with a name against it
Try to break the quorum

Key custody

Take away any two.
Nothing moves.

The private key is never assembled. It is created as five shares, held apart, and a transfer is only signed when three of them agree — which means a stolen laptop, a bribed employee or a raided building each buy an attacker exactly nothing.

Switch holders off and watch what happens

3 of 5 present

Quorum met — the transfer is signed.

Three signatures is the threshold. It is not adjustable from inside a session, and changing it is itself an action that needs the quorum.

No single point

Nobody holds enough

No individual, no office and no supplier holds three shares. The holders are chosen so that no two of them answer to the same person or sit in the same jurisdiction.

No silent change

The rule guards itself

Raising, lowering or reassigning the threshold is an operation like any other: it needs a quorum, it is logged, and it is visible on-chain after the fact.

No lost keys

Losing one is survivable

Three of five means two holders can be destroyed, compromised or unreachable and your money is still both safe and spendable. That is the point of a threshold rather than a vault.

Powers

What we can do,
and what we cannot.

Most security pages describe defences. The more useful question is what the company is able to do to you on a normal Tuesday, with nothing broken.

  • Move your shares to someone else Redemption and transfer are instructions you sign. bytblock cannot originate them, and the depositary will not act on a transfer that lacks your signature. No
  • Lend out your shares There is no securities lending desk here, and the custody account is not permitted to lend. Nothing you hold is earning someone else a fee behind your back. No
  • Take the other side of your trade bytblock does not run a proprietary book against its own users, and does not sell order flow to anyone who would. No
  • Sign anything with one person Every movement of custodied assets needs the quorum above. An employee acting alone — willingly or under duress — cannot produce a valid signature. No
  • See your balance and your history Yes — a regulated issuer has to know who its clients are and what they hold. Support staff see only what a specific ticket needs, and every look is logged against a name. Yes
  • Freeze an account Only where a court, a regulator or anti-money-laundering law requires it — never as a commercial decision, never to slow a withdrawal. You are told, unless the order forbids it. Only on order
  • Recover your own wallet if you lose its keys If you connected a wallet you control, its keys are yours alone. That is the deal self-custody makes, and we would rather say it plainly than imply a safety net that is not there. No

Your account

The half you control.

Custody is our side of it. Most real losses in this industry start on the other side — so the account is built to make the expensive mistakes hard to make.

Passkeys, not passwords

Sign in with the same face or fingerprint that unlocks your phone. There is no password to reuse, to phish, or to find in somebody else's leaked database.

A new device waits

A device you have never used before can look, but withdrawals hold for twenty-four hours and you are told on every channel you have. An attacker with your phone still has to wait, in the open.

Withdrawal allowlist

Name the addresses money is allowed to leave to. Adding one is a signed action with its own delay, so a session hijacked for ten minutes cannot invent a destination.

You sign the movement

Approvals are per transaction and say what they approve — amount, asset and destination in plain language. No blanket permission that quietly stays open afterwards.

The card, on a short leash

Freeze it in a tap, generate a single-use number for a site you do not trust, and turn off categories, regions or online use entirely. Every card is 3-D Secure by default.

Nothing hidden in a menu

Open sessions, connected devices and every login attempt are on one screen, with a button that ends all of them at once. Security you cannot find is security you do not have.

Assurance

Assume we are wrong.

Every claim above is worth precisely as much as the checking behind it. So the checking is done by people who do not work here.

An auditor signs the reserves

An independent firm attests custody against circulation on a published schedule. The hourly reconciliation runs between those signatures and is published whether it matches or not.

Tested by outsiders

Independent penetration testing before each significant release, plus a standing bug bounty. The fastest way to find out that something is wrong is to pay somebody to find it.

Incidents get published

If something goes wrong, affected users hear it from us first, and a written account follows within seventy-two hours — including the part where we explain what we got wrong.

bytblock is a demonstration build. The controls described here are the design it is being built to, not a certification it currently holds. No assets are in custody and no reserve account exists.

Where this sits legally

Inside the framework,
not around it.

A friendlier jurisdiction would be faster to launch from. It would also be the only thing standing between you and a bad day.

A supervised issuer

Tokenized securities under the EU's DLT Pilot Regime, stablecoins under MiCA, and a competent national authority that can ask for the books without asking us first.

Client assets, safeguarded

Segregation is not a policy we wrote. It is a requirement, it is examinable, and breaking it is a regulatory matter rather than an internal one.

Your data stays in the EU

Personal data is processed under GDPR and stored in the European Union. We hold what the rules require of a financial institution, and no more than that.

What happens if the company fails, the token breaks or the rules change is answered in full on how it works.

Ask the hard question.

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