Hardware-Hybrid Custody closes the residual risk that remains in fully cloud-hosted MPC systems: if enough cloud nodes are compromised to reach threshold, funds can be moved without any physical breach. By requiring one key share from a physically held hardware device, DeAgenticAI adds a second trust domain that cloud compromise alone cannot satisfy.
For institutions managing tokenised real-world assets and on-chain treasury operations, this changes custody from “secure if the cloud perimeter holds” to “secure even if cloud infrastructure is breached.” A valid signature requires both the MPC quorum and the hardware-held share, so attackers must achieve cloud-scale compromise and physical access at the same time.
Hardware-Hybrid Custody also preserves automation for governed AI-agent execution. It is not a manual approval model for every transaction; it is a cryptographic boundary at the key layer. Policy-governed autonomous workflows can continue, while the physical share enforces a hard stop against cloud-only key exfiltration and unilateral signing.
Inside the Agentic Control Plane, this layer works with upstream controls like Intent Sanitization and Policy DSL, and with downstream signing enforcement in Intent-Evaluated MPC. Together they provide defense in depth: identity and intent checks, policy verification, and physical-key participation in the final signature ceremony.