Canopy builds system to wall off high-value signing keys ahead of token launch

Canopy, the AI-native platform for building and deploying onchain applications, has launched Canopy KMS, a key management system that seals its high-value signing keys inside a dedicated enclave. 

The company stated that it is doing this to ensure that it has a tight security system in place before its upcoming token generation event (TGE).

How is Canopy protecting its keys from hackers?

According to the team, Canopy KMS has an isolation-first design. This means that the key material stays inside the enclave, and the enclave hands back nothing but the signature. 

Canopy’s CEO, Adam Liposky, said that they built the system from scratch to meet the specific demands of their ecosystem.

Cofounder and CTO Andrew Nguyen mentioned it as well, while pointing out that generic signers are built for broad compatibility. He said, “they do not handle the nuance nor volume of Canopy Terminal’s transfers.” 

And that is why they went to build a system that can handle those tasks the way they want it to.

Canopy KMS arrives at a critical time for crypto security

The company framed the Canopy KMS launch as a proactive signal to avoid adding to the growing statistics highlighting a difficult stretch for crypto security.

Chainalysis counted more than $3.4 billion stolen through direct exploits from January to early December 2025, with wallet compromises seeing a rise.

Bad actors did not take their foot off the pedal as they hit 2026, especially in the second quarter.

By the end of the first half (H1) of 2026, over $1.3 billion was lost to exploits. Wallet compromises were the leading category, with 33 incidents recorded and over $444 million lost, according to CertiK. 

Key handling is also one of the ways wallet compromises can occur, and it has become one of the surfaces attackers hit most often.

What does building from scratch signal?

Apart from being native to Canopy’s operations, the Canopy KMS system also governs signing for treasury disbursements, bridge transfers, and chain-creation functions.

Liposky said that their “systems inherit this protection by default, with no extra configuration” systems inherit this protection by default, with no extra configuration.”

The company was in the news two months ago, when it announced that it had raised $8.5 million in seed funding for its AI-native blockchain development. 

It also highlighted the progress of its testnet then, reporting that it had passed 331,000 project launches, with close to 27,000 of them in the first 12 days. Canopy is currently live on public testnet.