Systems and methods for generation and use of a distributed private key with a distributed ledger network

A method of securing a distributed ledger system, comprising:

• receiving, from a user application executed on an electronic user device and at a shared security platform executed on a backend, a request for a private key, the private key capable of accessing an account of a distributed ledger network, wherein the private key is associated with a public key and both the private key and public key are required to, when provided to a holding institution, access the account;
• generating and storing a first shard of the private key on a first institution backend using a protocol;
• generating and storing a second shard of the private key on a second institution backend using the protocol;
• receiving, from a merchant point of sale system and to the shared security platform, a request for a transaction associated with the account and a first partial signature of the first shard;
• retrieving, from the at least one institution backend, a second partial signature of the second shard;
• sending, by the smart card upon activation through a user's electronic device at the merchant point of sale system, the first shard as a payload from the smart card to a compute node in the shared security platform, wherein the compute node is configured to provide the partial signature of the first shard in a transaction signature;
• and
• generating a complete signature of the private key from the partial signatures of the first shard and the second shard by combining the partial signatures of the first shard and the second shard via a multiparty threshold signature protocol wherein the private key is only assembled at the shared security platform executed on the backend, and upon generating the complete signature, executing the transaction.

A method of securing a distributed ledger system, comprising:

• receiving, from a user application executed on an electronic user device and at a shared security platform executed on a backend, a request for a private key and a number of desired shards, the private key capable of accessing an account of a distributed ledger network, wherein the private key is associated with a public key and both the private key and public key are required to, when provided to a holding institution, access the account, wherein the number of desired shards is at least two;
• generating and storing a first shard of the number of desired shards of the private key on a smart card using the protocol;
• generating and storing a second shard of the number of desired shards of the private key on a first institution backend using a protocol;
• receiving, from a merchant point of sale system and to the shared security platform, a request for a transaction associated with the account and a first partial signature of the first shard;
• sending, by the smart card upon activation through a user's electronic device at the merchant point of sale system, the first shard as a payload from the smart card to a compute node in the shared security platform, wherein the compute node is configured to provide the partial signature of the first shard in a transaction signature;
• retrieving, from the at least one institution backend, a second partial signature of the second shard;
• and
• generating a complete signature of the private key from the partial signatures of the first shard and the second shard by combining the partial signatures of the first shard and the second shard via a multiparty threshold signature protocol wherein the private key is only assembled at the shared security platform executed on the backend, and upon generating the complete signature, executing the transaction.