What Is a Hardware Security Module (HSM) and Its Role in Cold Storage?

An HSM is a physical computing device that safeguards and manages digital keys, performs encryption and decryption, and provides cryptographic services. In institutional cold storage, HSMs are used to generate, store, and manage private keys in a tamper-resistant environment.

They ensure that the private keys never leave the secure module, providing a high level of security against both physical and remote attacks.