Trust & security

Security is architecture, not a badge.

Alloy is non-custodial by design. We never hold, control, or have access to your private keys or funds. This is our most important security property — and it is structural, not a policy choice.

In brief: Your providers hold the keys. Your policies govern the operations. Alloy provides the workflow, evidence, and audit layer above.
Architecture

Non-custodial by construction, not by promise.

The strongest security guarantee is one that cannot be violated by a configuration change, a rogue employee, or an operational mistake. Alloy's non-custodial boundary is enforced at the architecture level.

What Alloy sees

Transaction metadata, policy decisions, approval states, reconciliation records, and audit evidence. Alloy operates on the workflow and evidence layer — the operational semantics of what happened, what was approved, and what needs attention.

What Alloy never sees

Private keys, signing material, seed phrases, or raw cryptographic secrets. Key management and transaction signing remain with your chosen custody provider. Alloy connects via provider APIs — the same APIs your team already uses — and never requires key export or delegation.

Trust boundary

The control plane sits above custody, not beside it.

Most security incidents in digital asset operations happen at the workflow layer: wrong approvals, missed reconciliation, stale policy, or operator error during provider transitions. Alloy addresses this layer without expanding the custody trust boundary.

Provider API only — Alloy connects to custody providers through their standard APIs. No key material crosses the boundary.
Read-and-orchestrate — WalletKit reads provider state, normalizes it, applies policy checks, and submits transactions through provider signing flows. It does not bypass or replace provider-side controls.
Evidence, not authority — every operation produces audit evidence: what policy applied, what checks passed, what provider confirmed. This evidence is yours, exportable, and independent of Alloy.
Provider escape hatch — if Alloy is unreachable, your custody providers continue to function. There is no lock-in at the signing or custody layer.
Design principles

Six principles that shape every engineering decision.

Least privilege

Alloy requests only the minimum API permissions needed for each provider integration. Read access where possible; write access scoped to specific transaction submission flows.

Zero trust internal

Internal services authenticate every request. No implicit trust between components. Every API call carries identity, scope, and audit context regardless of network position.

Defense in depth

Multiple independent controls at every layer: network isolation, application-level authorization, provider-side approval policies, and customer-defined policy rules that execute before any provider call.

Immutable audit trail

Every operation, policy decision, approval, and provider interaction is logged to an append-only audit trail. Records include timestamps, actor identity, policy version, and provider confirmation.

Fail closed

When policy evaluation is uncertain, the default is denial. Missing policy rules, unreachable policy engines, or ambiguous approval states all result in blocked operations — never silent pass-through.

Encrypt everything

All data encrypted in transit (TLS 1.3) and at rest (AES-256). Provider API credentials stored in isolated secret management with per-tenant encryption keys. No shared secrets across customer boundaries.

Data handling

Your operational data. Your rules. Your export.

Alloy processes transaction metadata, policy decisions, and reconciliation records. Here is exactly what we store, how we protect it, and how you get it back.

  • Tenant isolation: Each customer's data is logically isolated with per-tenant encryption. No cross-tenant data access is architecturally possible.
  • Data residency: Infrastructure runs in SOC 2-audited cloud regions. Customers requiring specific data residency jurisdictions can specify this during onboarding.
  • Retention and deletion: Customers control retention policies. Full data export in standard formats (JSON, CSV) available at any time. Deletion requests processed within 30 days per our data processing terms.
  • No training on your data: Customer operational data is never used for model training, analytics sharing, or any purpose beyond providing the service you contracted.
  • Provider credentials: API keys and OAuth tokens for custody provider connections are stored in dedicated secret management, encrypted at rest with customer-scoped keys, and never logged or exposed in API responses.
Explicit scope

What Alloy does not do — and why that matters.

We are explicit about boundaries because vague security claims are worse than no claims. Here is what WalletKit phase one does not include.

Not a custodian — Alloy does not take possession, control, or fiduciary responsibility for customer funds under any circumstance.
Not a signing service — Transaction signing and key management remain entirely with the underlying custody provider. Alloy submits transactions through provider APIs; providers execute signing.
Not automatic routing — Phase one does not autonomously route transactions between providers. Routing logic is customer-defined and customer-approved before execution.
Not an accounting system — Alloy produces normalized reconciliation records and audit exports, but it is not a replacement for your general ledger, ERP, or accounting software.
Compliance roadmap

Where we are and where we are going.

Alloy is an early-stage company building toward enterprise compliance. We are honest about our current stage and transparent about our roadmap, because compliance is a journey, not a checkbox.

Now

Non-custodial architecture verified through design review. Encryption in transit and at rest. Per-tenant data isolation. Immutable audit logging. Secure credential management. Vulnerability scanning on every deployment.

Stage: design partner validation

Next (M6–M12)

SOC 2 Type I readiness assessment. Formal penetration testing by independent security firm. Security policy documentation to ISO 27001 control mapping. Customer-facing security questionnaire and evidence package.

Stage: post-seed execution

Future (M12+)

SOC 2 Type II audit engagement. Independent code audit for critical paths. Formal incident response program with defined SLAs. Customer-accessible Trust Center with live compliance status, audit reports, and sub-processor list.

Stage: growth and enterprise readiness

Regulatory positioning

Non-custodial is not just a design choice. It is a regulatory strategy.

By never holding, controlling, or having access to customer funds or private keys, Alloy operates outside the regulatory perimeter that applies to custodians, exchanges, and money transmitters in most jurisdictions.

  • No custody license required: Alloy's non-custodial architecture means it does not trigger custody-specific licensing requirements (BitLicense, state MTLs, MiCA CASP custody obligations) in the jurisdictions we have assessed.
  • Customer compliance support: Alloy produces audit evidence, policy logs, and reconciliation records that help customers meet their own compliance obligations to regulators and auditors.
  • Jurisdiction awareness: Provider adapter configurations include jurisdiction metadata so policy rules can enforce geographic and regulatory constraints before transactions reach the provider.
  • Not legal advice: This page describes our architecture and how we believe it relates to regulatory frameworks. Customers should consult their own legal counsel for jurisdiction-specific compliance guidance.
Infrastructure

Production security controls.

Network and access

Private network segmentation with no public-facing database endpoints. All administrative access requires MFA and is logged. Infrastructure-as-code with change review for all production modifications. No SSH access to production hosts — operations via audited control plane only.

Application security

Dependency scanning and SAST on every pull request. Container image scanning before deployment. Secrets never stored in code repositories. Rate limiting and abuse protection on all API endpoints. Input validation and output encoding at every service boundary.

Monitoring and response

Real-time alerting on anomalous access patterns, failed authentication attempts, and policy engine exceptions. Structured logging with correlation IDs across every service. Incident response runbooks for the most common failure scenarios.

Business continuity

Multi-region deployment capability. Automated backups with tested restore procedures. If Alloy becomes unavailable, customers retain full access to their custody providers and all previously exported audit data. No single point of failure in the critical transaction path.

Responsible disclosure

Found something? Tell us.

We take security reports seriously and respond promptly. If you discover a vulnerability in Alloy's systems, please report it responsibly.

  • Report to: security@alloy.build
  • Response time: Initial acknowledgment within 24 hours. Assessment and triage within 72 hours.
  • Scope: All Alloy-operated services, APIs, and web properties. Exclude third-party custody providers (report those directly to the provider).
  • Recognition: We credit researchers who report valid vulnerabilities (with their permission) and do not pursue legal action against good-faith security research.
Security FAQ

Common questions from security and compliance teams.

Can Alloy access my private keys or sign transactions on my behalf?

No. Alloy's architecture does not include any mechanism to access, store, or generate private keys. Transaction signing is performed by your custody provider through their standard signing flow. Alloy submits transaction requests via provider APIs — the same APIs your team already uses directly.

What happens to my operations if Alloy goes down?

Your custody providers continue to function independently. All transactions previously submitted are already with the provider. Audit evidence and reconciliation records exported before the outage remain in your systems. Alloy is an operational layer, not a dependency in the critical signing path.

Is Alloy SOC 2 certified?

Not yet. Alloy is an early-stage company currently in design partner validation. SOC 2 Type I readiness is on our compliance roadmap for months 6–12 post-seed, with Type II audit engagement planned for month 12+. We are transparent about this because we believe honesty about compliance stage is more useful than vague claims.

How is my provider API credential stored?

Provider API keys and OAuth tokens are encrypted at rest using AES-256 with per-tenant encryption keys stored in dedicated secret management infrastructure. Credentials are never logged, never exposed in API responses, and never accessible to Alloy personnel without a formal access request process.

Can Alloy employees see my transaction data?

Production data access requires explicit justification, MFA authentication, and is fully logged. Routine operations do not require access to customer data. Support cases that require data access follow a documented process with time-limited permissions and audit review.

Does Alloy need a custody license?

Based on our assessment, Alloy's non-custodial architecture — which never holds, controls, or has access to private keys or customer funds — does not trigger custody-specific licensing requirements in the jurisdictions we operate in. However, regulatory landscapes evolve. Customers should consult their own legal counsel for jurisdiction-specific guidance. We are happy to provide architectural documentation to support your legal team's assessment.

Can I get a security questionnaire or evidence package?

Yes. Contact security@alloy.build for our current security documentation, architecture diagrams, and control descriptions. We are building toward a self-service Trust Center with live compliance status for later stages.

Security questions? Let's talk architecture.

The best security conversation starts with your specific requirements: regulatory environment, provider landscape, data residency needs, and compliance obligations. We will walk through exactly how Alloy's architecture maps to your security model.

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