Introducing Praetorian by Casa: Empowering self-custody for sovereign bitcoin reserves
Many governments today are sovereign in everything but their money. Whether it’s gold in a custodial vault or a financial system built on fractional reserves, nations often find themselves dependent on centralized third parties, many of whom are not even in their jurisdiction.
Today, we’re empowering governments to truly own their reserves. Through Praetorian by Casa, a nation-state can hold the private keys to its strategic bitcoin reserve using a purpose-built security model.
Why self-custody matters for governments
It's hard to secure sovereign reserves, and historically, the risk of seizure has been amplified if assets are held with third parties:
- In 1939, the Nazis invaded and occupied Czechoslovakia and compelled the Czechs to transfer gold reserves held at the Bank of England.
- In 1971, President Nixon closed the gold window, cancelling the ability of foreign countries who held gold at the New York Federal Reserve to trade dollars in for their own gold reserves.
- In 2022, Western countries froze $300 billion in Russia’s foreign currency reserves after they invaded Ukraine.
It’s not often that governments encounter something outside of their control, but the bitcoin protocol is one such phenomenon. If an entrusted custodian loses bitcoin it is holding on behalf of a nation-state, the government may not have many options for recovering those funds.
Through self-custody, a government can reduce counterparty risks associated with centralized actors, create a transparent, verifiable reserve management strategy, and hedge against systemic risks. Holding keys ensures that, if nothing else, a government can transact on the bitcoin network. This is the type of scenario planning and resilience that citizens look for in their leaders.
The challenge of a strategic bitcoin reserve
While there is precedent for nation-states holding bitcoin, the subject of strategic reserves has gained considerable traction recently in the U.S. and other nations.
Allocating to bitcoin, however, is only one part of the effort. Owning bitcoin requires individual investors and governments to choose a relationship with private keys: hands-on or hands-off. Irrespective of how bitcoin is represented on ledgers in the legacy financial system, some person or entity must ultimately hold the keys to sign on-chain transactions.
Until recently, governments have been hesitant to adopt bitcoin due to its novelty as an asset and its unique approach to ownership. Because bitcoin and other crypto assets are intangible, a government has to develop a protocol for securing the private keys to its addresses.
Governments are fully capable of using this infrastructure — they have long acted as a steward of national intelligence, nuclear defense systems, and classified information. The obstacle with bitcoin has been the tech.
But today, this challenge can be overcome. Countries and sovereign wealth funds are able to hold their own assets with defensive measures consistent with national security frameworks. And Casa is ready to deliver.
Praetorian by Casa: The world’s first military-grade bitcoin vault
Praetorian by Casa is the culmination of six years of development from our security team. This new offering uniquely meets the strategic objectives of governments and their agencies with a focus on operational security (OPSEC), command and control, and contingency planning. In total, the solution is comprised of these pillars:
Multi-signature security
At its core, this protocol begins with the implementation of several multi-signature vaults, which are customized to the mission at hand. These vaults require authorized signatories to approve transactions, eliminating single points of failure.
Key management built from source
The security of a multisig vault comes down to its implementation. Casa provides the necessary equipment and software you need to maintain proper key distribution with battle-tested devices.
Delegation of authority and compliance functions
Your strategic reserve should be designed around your chain of command. Casa’s team signing and role management arm you with granular oversight for vault maintenance, audits, and emergency drills.
Software redundancy
Your government reserves should not be dependent on a third-party software stack, and that includes Casa. Follow our Sovereign Recovery protocol, and your vaults remain accessible with open-source software in the event Casa is unreachable.
Ongoing advisory
Our security experts can provide your team with training and guidance. We’ll work with you to deploy military-grade security protocols, including advanced hardware security modules (HSMs) and rapid response procedures.
Where did the name come from?
In Roman times, the Praetorian Guard was the elite imperial guard of the emperors. They provided a combination of personal protection and special forces and maintained stability for the Roman republic's most valuable assets.
Bitcoin is the type of innovation that empires will be built upon, and with Praetorian by Casa, our team will stand guard for your strategic reserves.
Defending sovereignty in the digital age
Casa began in 2018 with the mission of empowering individuals to secure their digital sovereignty. Today, we’re prepared to help sovereign nation-states claim the same for themselves.
The world is converging on bitcoin as we speak. Through Praetorian by Casa, your government can attain full autonomy for your strategic reserve. With a secure, transparent, and sovereign method of holding bitcoin, nations can participate in the digital economy on their own terms.
Exploring bitcoin reserves? Start with security.
Is your government considering an allocation to bitcoin and other assets? It’s time to start planning your security infrastructure. Schedule a consultation here.