IEEE Std 2140.5-2020 pdf download
IEEE Std 2140.5-2020 pdf download.IEEE Standard for a Custodian Framework of Cryptocurrency.
Furthermore, the framework serves token assets as well. Cryptocurrency custodian services, as part of token asset custodian service, have to satisfy more regulation requirements. The details on these functions are elaborated in Clause 6.
3.2 Dimensions of custodian service of cryptocurrency
In the Static Custody Model, cryptocurrency and token assets go live in distributed ledger technology systems, especially public blockchain systems. The Static Custody Model provides the capability to enable entities, cryptocurrency and token assets, and operation definitions in blockchain systems to other financial systems based on custodian services.
In dynamic runtirne of cryptocurrency processing and management, the cryptocurrency processing and management runtirne in a custodian framework provides the capability to trace cryptocurrency processing and control the accessibility for entities accessing cryptocurrency.
In trust functions for audit and regulation, asset custodian service provides audit of the processing, management, ownership and accessibility of cryptocurrency and token asset. In some regions, asset custody is under escrow; thus, asset custodian service has to be able to support the regulation.
4. Requirements to support custodian service of cryptocurrency
The custodian service is to provide cryptographic protocol and technical solution to manage the “key” of cryptocurrency and token assets, make full control of the ownership and accessibility of the cryptocurrency and token asset. Therefore, the combination of custodian framework and hlockchain system constructs a reliable solution to enable asset custody and traceability of custody processing and management.
To support a custodian service of cryptocurrency, the 4.1 through 4.5 are required to be considered.
4.1 General requirements for a custodian service of cryptocurrency
To ensure the appropriate level of asset custody, the following aspects are required:
Capability to manage cryptocurrency and token assets in various distributed ledger technologies, especially public blockchain projects
— Capability to provide definition for custody procedures and full supporting by technical architecture
Capability to support audit from both internal and external
Capability to support regulation or escrow in regions
Capability to provide extended standard interfaces for docking third-party financial services
4.2 Requirements for generic cryptocurrency standards upon blockchain projects
To ensure the appropriate level of cryptocurrency and token asset custody in different blockchain projects, the following aspects are required:
Capability to manage fungible tokens and provide a custodian service
Capability to manage non-flingible tokens (NFTs) and provide custodian service
Capability to inherit the data security and data privacy from the blockchain projects
Capability to secure asset storage mechanisms with extendable architecture to involve cryptocurrency and token assets in multiple blockchain projects
Capability to refine account security, including cryptographic (hardware) standards of multi-sign, key indicators, checkpoints. etc.
4.4 Requirements for cryptocurrency processing and management in a custodian service
To ensure the appropriate level of dynamic custodian runtime Ibliowing aspects are required:
Capability to enable workflow driving for cryptocurrency and token asset processing and management, including auditing, risk control, etc.
Capability to provide extendable standard interfaces to dock third-party financial systems
4.5 Requirements for security audit and regulation for custodian service of cryptocu rrency
In asset custodian systems. the processing and accessibility of cryptocurrency and token assets is not clearly defined. The ownership and accessibility may belong to different entities or persons. The auditing and regulation of custodian assets under escrow has to be considered.
To ensure the cryptocurrency can be processed or managed by pre-authorized entities, the following aspects are required:
Strong access control with full traceability. It is required that the access control and asset processing
and management provides security and privacy.
Capability to provide audit reports from customers, cryptocurrencies, transactions and services.
Capability to provide expandable interfaces for regulation work cross border.
5. A functional model to support cryptocurrency a custodian
The functional model of a cryptocurrency custodian framework in blockchain provides asset custody service for external use and the mechanisms to support financial services of cryptocurrency. The functional design of this model is shown in Figure 2.
