Security for stablecoin and tokenisation issuers
Stablecoin and tokenised asset issuers combine smart contracts that control supply with off-chain systems that decide when to mint and redeem. A flaw in either can create unbacked tokens. HYDN audits mint, burn, blacklist and upgrade controls on-chain, and tests the custody, signing and operational processes behind them.
On-chain
- Token audits of mint, burn, pause and blacklist functions.
- Upgradeability and admin control. See proxy vulnerabilities.
- Multichain supply and bridge integrations.
Off-chain
- Mint and redemption workflows, and who can approve them.
- Key custody and signing. See private key compromise.
- Penetration testing of the platforms and APIs that drive issuance.
- Regulatory testing requirements, including DORA for firms in its scope.
Questions
Frequently asked questions
What is the biggest technical risk for an issuer?
Unauthorised minting. Whoever controls the mint function, directly or through an upgrade, controls the backing. Those keys and processes need the strongest protection in the business.
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