Tel Aviv-based crypto key management startup Sodot announced the general availability of its Exchange API Vault on Thursday, a new tool designed to let institutional traders secure their trading keys without sacrificing the speed needed for high-frequency operations.
The solution addresses a critical vulnerability in the crypto ecosystem.
Unprotected API keys, which have been the vector behind some of the industry’s most devastating hacks, including the February 2025 Bybit breach that saw over 400,000 ETH worth $1.46 billion stolen by North Korean hackers.
The problem: Keys under fire
API keys are essentially passwords that let trading systems automatically execute transactions without human intervention.
They are essential for market makers and asset managers that operate across dozens of exchanges simultaneously, but they’re also an attractive target for hackers.
When keys aren’t properly secured, compromised systems can drain wallets in minutes.
The Bybit incident illustrated exactly how dangerous this vulnerability has become.
Hackers injected malicious code into the Safe{Wallet} interface used by the exchange, manipulating transaction approval screens so Bybit’s team unknowingly authorized a massive fund transfer to attacker-controlled addresses.
The theft remains the largest digital heist in cryptocurrency history.
What Sodot’s solution does differently
Most key management tools treat security and speed as a trade-off.
Sodot says it’s cracked the code on both.
The Exchange API Vault uses advanced cryptographic techniques, specifically multi-party computation (MPC) and trusted execution environments (TEE), to split API keys across multiple locations so the complete key never exists in one place.
This architecture makes keys significantly harder to steal, even if a hacker compromises part of the system.
The platform also includes an emergency “kill switch” that lets traders instantly revoke access if they suspect a breach.
Real-time monitoring and auditability mean teams can track exactly which systems accessed keys and when.
Critically, Sodot’s infrastructure maintains low-latency performance, meaning traders don’t sacrifice execution speed for security, a requirement that rules out most enterprise security tools.
Institutional validation: Flow traders jump in
Flow Traders, one of the world’s largest cryptocurrency market makers operating across major exchanges globally, is among the first institutional clients to deploy Sodot’s solution.
As a firm managing hundreds of active API keys for automated trading and liquidity provision, Flow Traders represents exactly the kind of operation that needs this infrastructure.
Laszlo Fodor, Flow Traders’ Head of Digital Assets Technology, praised the solution as a trust-builder for the broader ecosystem.
Fodor said in a statement:
Solutions like Sodot’s Exchange API Vault contribute to the trust across the digital asset ecosystem, which is an important driver for broader adoption and its underlying technological innovation. We are actively leveraging and supporting such solutions to continue to advance capital markets.
The convergence of scaling crypto markets and fragmented exchange infrastructure means institutional firms now rely on hundreds of keys operating continuously.
Ido Sofer, CEO of Sodot said:
Flow Traders sets a high bar for how modern trading teams should operate. We’re proud to support that standard with our infrastructure products, and contribute to their important mission of driving efficiency and innovation across global financial markets
As trading environments grow more complex, the operational risk compounds.
Sodot’s announcement signals that the industry is finally addressing API key management at the infrastructure level, not just treating it as an afterthought in security protocols.
For traders managing billions in daily volumes, that distinction could be the difference between business as usual and catastrophic loss.
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