For the complete documentation index, see llms.txt. This page is also available as Markdown.

Architecture and trust boundaries

How CBTC works

Architecture at a glance

CBTC connects Bitcoin custody and event verification with private Canton contract workflows. This page owns the component map and trust boundaries. Lifecycle steps belong in How CBTC works; control requirements belong in CBTC security.

Component map

Component
Responsibility
Primary boundary

Bitcoin addresses and transactions

Receive eligible deposits and deliver approved redemptions

Bitcoin transaction, fee, and confirmation behavior

Attestor Network

Verify eligible events and participate in threshold authorization

Independent operation, policy, and signing shares

CBTC workflow services

Associate accounts and events, coordinate workflows, and reconcile state

Authentication, availability, and correct state handling

Canton participants and parties

Host parties, contracts, and authorized commands

Canton identity, rights, topology, and privacy

CBTC Daml packages

Define holdings, transfers, accounts, credentials, and administrative behavior

Approved package versions and contract authorization

Client libraries and applications

Expose supported workflows and submit authorized requests

Pinned releases, credentials, validation, and retries

Proof of Reserve and reconciliation

Provide scoped evidence about reserves and system state

Completeness, freshness, source integrity, and stated limitations

Trust boundaries

Bitcoin custody

Underlying Bitcoin uses FROST threshold signing across independent Attestor Network operators. The threshold is configurable, and the operator set can change. Verify current operating details through the maintained security reference.

Attestor Network

Event verification and signing authorization are separate responsibilities. No single operator should be presented as sufficient to authorize a custody action. The detailed signing model belongs in CBTC Attestor Network and FROST.

Canton

Canton records CBTC contract state and applies authorization through parties, participant rights, package logic, and topology. Configurable sub-transaction privacy limits contract visibility to entitled parties; it does not hide Bitcoin transactions.

Integration services

Clients authenticate separately to Canton and approved CBTC services. They must validate networks, parties, addresses, package compatibility, and authoritative state before retrying an ambiguous request.

Evidence

Proof of Reserve demonstrates only the evidence and observation scope documented on CBTC Proof of Reserve. It does not prove every application, custody, operational, or redemption property.

Architecture limits

This architecture does not by itself guarantee instant Bitcoin confirmation, every external service’s availability, correct integrator configuration, protection from an authorized request containing the wrong destination, or complete coverage by one evidence source.

Technical sources

Next step

👉 Review the control model: CBTC security.

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