Methods and systems for safe creation, custody, recovery, and management of a digital asset

A system for secure creation, custody, recovery, and management of a digital asset, the system comprising:

• at least one processor;
• and
• a memory storing processor-executable instructions, wherein the at least one processor is configured to implement the following operations upon executing the processor-executable instructions:
• receiving a request to generate a master private key;
• generating the master private key, the generating the master private key comprising:
• securely connecting a plurality of physical devices, the plurality of physical devices generating a plurality of digital secrets, the plurality of digital secrets corresponding to the plurality of physical devices;
• and
• randomly selecting a master physical device of the plurality of physical devices, the master physical device generating the master private key using the plurality of digital secrets of each of the plurality of physical devices in response to the request to generate the master private key;
• receiving a custody request for the master private key;
• dividing the master private key into a plurality master private key portions using a cryptographic algorithm in response to the receiving the custody request for the master private key, the cryptographic algorithm comprising a threshold number of the plurality master private key portions necessary for later reconstruction of the master private key, the threshold number of the plurality master private key portions being a subset of the plurality master private key portions;
• storing the plurality master private key portions on the plurality of physical devices with each master private key portion of the plurality master private key portions stored on a separate individual physical device;
• reconstructing the master private key using the plurality master private key portions on the plurality of physical devices, the reconstructing the master private key requiring the threshold number of the plurality master private key portions necessary generation of the reconstructed master private key, the threshold number of the plurality master private key portions being the subset of the plurality master private key portions;
• and
• transacting a digital asset by signing a transaction using the reconstructed master private key.