Case Study · Blockchain & Digital Asset Custody
Custodial Wallets: Real On-Chain Custody Behind Every Account
Every user of the TeleCanor CEX gets a real, individually-generated on-chain AUUM address -- not an IOU, not a shared pool -- with the private key encrypted at rest and never handled in plaintext outside a signing operation.
AES-256-GCM
Encrypted key storage
Per-User
Individually generated address
Two-Tier
On-chain custody + off-chain ledger
Native
Trades AMM & Perps directly
The challenge
A custodial wallet that's really just a database row with a number in it isn't custody -- it's a promise. Real custody means an actual on-chain address exists for every user, with a real private key behind it, while still giving users the instant, gasless trading experience they expect from an exchange. Those two things usually pull in opposite directions; a proper custodial wallet has to satisfy both at once.
What we built
Encrypted Key Storage
Never plaintext outside a signing operation
Every custodial private key is encrypted at rest with AES-256-GCM before it ever touches a database -- decrypted only in memory, only for the instant a signature is actually produced.
Two-Tier Architecture
Real settlement, instant trading
A real on-chain address handles deposit and custody; an off-chain ledger balance handles instant trading -- mirroring exactly how real exchanges separate on-chain settlement from off-chain matching, rather than settling every order on-chain.
Native DeFi From Custody
No separate wallet, no manual step
The same custodial balance that trades on the CEX order book can swap on the AMM or open a leveraged Perps position directly -- no exporting funds to a separate wallet first.
When it's used
- Every CEX user, automatically -- a real address is generated the moment an account is created.
- Anyone trading AMM/Perps who wants their funds custodied on-chain, not just tracked in a database.
- Businesses building their own custody layer without wiring encrypted key storage from zero.
How to use it
Custodial wallets are provisioned automatically as part of the CEX -- register an account, and a real AUUM address is generated and encrypted behind it, ready to deposit into.
- Register on the CEX
- Your custodial address is generated and encrypted
- Deposit, trade, and withdraw whenever you like
Need real custody behind your product?
Let's talk about custodial wallets, encrypted key storage, and the rest of your custody stack.