How do exchanges auto refill from cold storage?

[OmegaStarScream]

I would imagine that exchanges have some mechanisms in place to automatically refill their hot wallets once they're below a certain amount? Something other than the CEO having physical access to a hardware wallet and manually transferring the funds.

If so, what are some of the available solutions out there for bitcoin, and other cryptos? I know there is Safe.global which could help in such a scenario but want to know what are some of the other solutions out there

[Hatchy]

I would imagine that exchanges have some mechanisms in place to automatically refill their hot wallets once they're below a certain amount? Something other than the CEO having physical access to a hardware wallet and manually transferring the funds.

If so, what are some of the available solutions out there for bitcoin, and other cryptos? I know there is Safe.global which could help in such a scenario but want to know what are some of the other solutions out there

Exchanges usually handles a lot of transactions on a daily bases, so it's obvious that they use automated systems to manage their hot and and cold wallets. I think it would be difficult performing such task manually given the number of users that on their platforms. The system may have been designed in a way to detect low funds on the reserve hot wallet and once it reaches it automatically request a refill. All they just need is to sign each transaction using multi signatures from different trusted parties..

The CEO literally may just over see every signed transaction making sure the wallets are refilled..

[Sticky Bomb]

I would imagine that exchanges have some mechanisms in place to automatically refill their hot wallets once they're below a certain amount? Something other than the CEO having physical access to a hardware wallet and manually transferring the funds.

If so, what are some of the available solutions out there for bitcoin, and other cryptos? I know there is Safe.global which could help in such a scenario but want to know what are some of the other solutions out there

Here are my findings,

-Fireblocks : Can be used in treasury management, supports threshold signatures(MPC) and can directly refill hot wallets when they are below a certain threshold, eg 10BTC. It can support over a thousand cryptocurrencies and integrates very well with exchanges, DEFI, CEFI etc.

-Copper.co: Can automate the flow of funds from cold to hot wallets and uses Multi-party computation (MPC) vaults and Copper ClearLoop for faster delivery.

These two are clearly tailored to also facilitate cold wallet to hot wallet automated funds transfer.

Here are the links to their official sites for more findings
https://copper.co/en
https://www.fireblocks.com/

[Mia Chloe]

Exchanges usually handles a lot of transactions on a daily bases, so it's obvious that they use automated systems to manage their hot and and cold wallets. I think it would be difficult performing such task manually given the number of users that on their platforms.

Agree with the first part that says exchanges handle a lot of transactions and a daily basis but the fact is they don't use automated system for their cold storages this is because automated systems require internet connection most of the time to run and if internet connection is involved it's no longer cold storage. In my opinion I believe that most of them make use of multisignature wallet for larger amount of funds. 

This will reduce the chances of losing funds if a single key is lost or compromised by hackers. Most times exchanges don't even need to use their cold storage since people swap across different currencies every single day depending on how big the exchange is. In the end most of the time the currencies cancel out each other.

[OmegaStarScream]

Here are my findings,

-Fireblocks : Can be used in treasury management, supports threshold signatures(MPC) and can directly refill hot wallets when they are below a certain threshold, eg 10BTC. It can support over a thousand cryptocurrencies and integrates very well with exchanges, DEFI, CEFI etc.

-Copper.co: Can automate the flow of funds from cold to hot wallets and uses Multi-party computation (MPC) vaults and Copper ClearLoop for faster delivery.

These two are clearly tailored to also facilitate cold wallet to hot wallet automated funds transfer.

Here are the links to their official sites for more findings
https://copper.co/en
https://www.fireblocks.com/

Thank you for your response. I did ask AI, and I got similar suggestions, but these options are very expensive. I was thinking maybe of a solution that one could use without spending a fortune.

I understand that multisigs are used, but I want to know what's the process and whether it's automated, or if there are third party services that one could use to facilitate this.