Case Study - Crypto Exchange
Finrock Powers CoinGarage’s Non-Custodial Wallet with Compliance, Cost Savings & Control
Finrock – Middleware for Crypto, Blockchain & Web3
The Challenge
CoinGarage, a fast-growing crypto exchange, needed a secure, compliant, and cost-effective non-custodial wallet solution to:
- Achieve DORA Compliance – Meet EU’s Digital Operational Resilience Act (DORA) requirements for risk management and reporting.
- Isolate Trading Operations – Ensure complete separation between exchange liquidity and customer funds.
- Reduce Custodial Costs – Avoid expensive third-party custody fees (competitors quoted $25K+/month).
- Optimize Gas Fees – High transaction costs were eating into margins.
- Simplify Audits – Generate automated Proof-of-Reserve (PoR) reports for regulators and users.
- Enforce Treasury Controls – Prevent unauthorized withdrawals via granular spending policies.
The Solution
Finrock’s non-custodial wallet infrastructure provided a secure, compliant, and self-managed alternative to custodial solutions like Fireblocks and BitGo, offering:
1. DORA Compliance Made Easy
Automated Risk Monitoring – Real-time alerts for suspicious transactions.
Auditable Ledger – Every transaction recorded on-chain + Finrock’s immutable logs.
Regulatory Reporting – Pre-formatted templates for EU regulators.
2. Full Isolation from Trading Ops
Automated Risk Monitoring – Real-time alerts for suspicious transactions.
Dedicated Non-Custodial Wallets – No commingling of exchange and user funds.
Isolated Key Management – Private keys are stored away from the exchange's infrastructure.
3. Seamless Multi-Sig Cold Wallet Integration
Hybrid Custody Model – Hot wallets for liquidity, multi-sig cold wallets for long-term storage.
Automated Cold Storage Sweeps – Scheduled transfers to cold wallets without manual intervention.
4. 70% Lower Costs vs. Competitors
Affordable Service – Finrock’s affordable pricing model helped save up to $300K+ annually**.
Gas Optimization Engine – Proprietary deep-learning model reduced Ethereum gas fees by 70% via batch transactions and fee prediction.
5. One-Click Proof-of-Reserve Audits
Automated PoR Reports – Monthly statements hashed on-chain for transparency.
Real-Time Reserve Tracking – Exchange solvency verifiable 24/7.
6. Granular Treasury Controls
Spending Policy Engine – Rules-based outflow restrictions:
Destination-based (e.g., block withdrawals to high-risk addresses).
Frequency-based (e.g., limit withdrawals to 3/day per user).
Volume-based (e.g., cap large transfers without multi-approval).
Results: Secure, Compliant & Cost-Efficient
| Metric | Before Finrock | After Finrock |
|---|---|---|
| Monthly Custody Costs | $25,000+ (Fireblocks/BitGo) | $7,500 (70% savings) |
| Gas Fees | $50,000/month | $15,000/month |
| Audit Time | 2 weeks manual work | Automated PoR in 1 click |
| Regulatory Compliance | Partial (manual checks) | Full DORA adherence |
| Security Incidents | 1 near-miss (2024) | Zero since deployment |
Client Testimonial
"Finrock’s non-custodial solution gave us the security of BitGo, the compliance of Fireblocks, and the cost efficiency of an in-house system—without the overhead. Their gas optimization alone paid for the platform in 6 months."
– Ota Janda, CEO of Coingarage
Finrock’s Competitive Edge
- ⚡ Self-Sovereign Security – No reliance on third-party custodians.
- ⚡ Deep Learning for Gas Savings – Predicts optimal transaction times.
- ⚡ Regulatory First Design – Built for DORA, MiCA, and beyond.
- ⚡ 360° Treasury Control – Customizable spending policies.
→ Want similar results?Contact Finrock for a compliance-ready, cost-efficient wallet solution.