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153 changes: 153 additions & 0 deletions vendors/StateLabs.md
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---
title: "Vendor: State Labs"
status: draft
---

# State Labs – Privacy-Preserving Infrastructure

State Labs develops regulated privacy-preserving infrastructure for institutional payments (Tx-Shield), private AI collaboration (OpenTMP LLM), and MPC-TSS key management (Collab-Key).
State Labs’ three core solutions — **Tx-Shield**, **OpenTMP LLM**, and **Collab-Key** — address compliance, compute, and custody privacy challenges faced by regulated institutions.

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## What it is
State Labs builds modular privacy layers/solutions for institutional finance and AI systems:
- **Tx Shield** — a regulated private payment layer/solution built on MPC-based encryption and threshold key control.
It enables confidential settlement for stablecoins, RWAs, and bonds while ensuring regulator-auditable transparency.
Transactions are visible only to stakeholders, while regulators can access details through granted audit keys.
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in this part, can you pls clarify how an investor is KYCed? and how asset issuance is done?


- **OpenTMP LLM** — is a distributed edge AI training and inference framework designed for privacy-preserving large-language model collaboration. It combines federated learning and multi-party computation (MPC-FL) to keep data local while enabling encrypted aggregation and joint model updates. It powers collaborative, effcient, secure, and governable AI training across distributed environments.
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how do we map this to institutional privacy? is this a new feature for institutions?

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and how does this interact with Ethereum L1?


- **Collab-Key** — is a high-performance MPC-TSS framework supporting both two-party and multi-party ECDSA signing.
It ensures that no single participant ever reconstructs a full private key, providing cryptographic resilience and institutional-grade security.
The system integrates seamlessly with existing KMS and client applications for fast, production-grade signing.
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is this MPC-TSS for Bank, Investor, or for Regulator and how to incorporate it?


Each module can operate independently or as part of a unified privacy-preserving stack across payments, compute, and custody.
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can you pls add an example of how do you stack them together?


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## Fits with patterns (names only)

Tx-Shield:
- pattern-private-stablecoin-shielded-payments
- pattern-private-pvp-stablecoins-erc5753
- pattern-regulatory-disclosure-keys-proofs
- pattern-te-ex-settlement

OpenTMP LLM (adjacency):
- pattern-adj-private-consortium-ledger
- pattern-adj-delayed-post-trade-reporting

Collab-Key:
- pattern-key-management-threshold-kms

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This section is a bit too general and does not add much information what has been in the introduction, can you pls elaborate?

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## Not a substitute for

Tx-Shield:
- Non-compliant on-chain transfer systems
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Not sure what you mean here, but non-compliant on-chain system is not among the institutional usecases

- Centralized custodial payment rails


OpenTMP LLM:
- Centralized AI model training pipelines
- Non-encrypted data-sharing frameworks


Collab-Key:
- Single-key custodial wallets
- Hardware-based key storage only

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## Architecture
### Tx-Shield
Implements a high performance MPC-based private payment layer with threshold key control and an audit-key protocol for regulator visibility.
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is this technically a network? or a centrally controlled 2-3 nodes cluster?

Only sender, receiver i.e. stakers, and authorized regulators can access encrypted transaction details.
Optimized MPC execution enables high performance (~10k TPS).

### OpenTMP LLM
Distributed AI architecture using federated learning and multi-party computation (MPC-FL) with threshold-secure aggregation.
Supports edge acceleration, model distillation, quantization, and joint model governance.
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what is the concrete efficiency can we expect here?


### Collab-Key
MPC-TSS signing system supporting both 2PC and multi-party ECDSA protocols.
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what is the current scheme and library you are using here?

Ensures that private keys are never reconstructed in full.
Integrates seamlessly with institutional KMS systems and APIs.

---

## Privacy domains (if applicable)
- Private Payments / Compliance Infrastructure
- Collaborative AI / Federated Learning Privacy
- Custody / Key Management

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## Enterprise demand and use cases
Tx-Shield:
- Institutional settlement for stablecoins, tokenized RWAs, and bonds on-chain.
- Ideal for financial institutions needing confidentiality and compliance together.

OpenTMP LLM:
- Privacy-preserving AI model training and inferences for enterprises and regulated sectors, such as healthcare, finance, and government.

Collab-Key:
Institutional wallets, custodians, and enterprise-grade signing infrastructure needing fault-tolerant and secure key management.

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## Technical details
Tx-Shield:
- MPC-based encryption, threshold key control (TSS), high-throughput multi-party computation.

OpenTMP LLM:
- MPC-FL, Distributed Learning, Edge AI Acceleration, SFT, RLHF.

Collab-Key:
- MPC-TSS (ECDSA 2PC / multi-party), Threshold Signatures, Secure Key Generation.

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## Strengths
Tx-Shield:
- Combines institutional privacy and regulatory compliance
- High performance (~10k TPS)
- Fine-grained regulator audit access through cryptographic keys

OpenTMP LLM:
- Keeps data local during training and inference
- Enables joint model ownership and governance
- High efficiency through edge AI optimization

Collab-Key:
- Eliminates single-party key reconstruction
- Integrates seamlessly with KMS and signing APIs
- Backed by peer-reviewed research from *USENIX Security 2025*
1. *Improved Secure Two-party Computation from a Geometric Perspective* (USENIX Security 2025)
2. *Achilles: A Formal Framework of Leaking Secrets from Signature Schemes via Rowhammer* (USENIX Security 2025, Honorable Mentions)

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this is quite repetitive to above sections as well

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## Risks and open questions
Tx-Shield:
- Governance over regulator audit keys
- Integration complexity across different blockchain environments
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can you pls be more specific with this intergration complexity?


OpenTMP LLM:
- Coordination complexity in multi-party settings
- Trade-offs between model performance and full encryption overhead

Collab-Key:
- Performance scaling with increased party count
- Implementation complexity across heterogeneous custody systems

---

## Links
Website: [https://statelabs.ai](https://statelabs.ai)
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Is your solution open-sourced? The GH https://github.com/StateLabs does not have a public repo?

Contact: [[email protected]](mailto:[email protected]) | [[email protected]](mailto:[email protected]) | [[email protected]](mailto:[email protected])
Papers:
- [USENIX Security 2025 – Guo et al.](https://www.usenix.org/system/files/usenixsecurity25-guo-hao-improved.pdf)
- [USENIX Security 2025 – Liang et al.](https://www.usenix.org/system/files/usenixsecurity25-liang-achilles.pdf)