Definition ∞ FIPS 140 compliance signifies adherence to a US government standard for cryptographic module security. This standard, specifically FIPS 140-2 or FIPS 140-3, outlines requirements for cryptographic modules used in government and regulated industries, covering aspects like physical security, cryptographic key management, and operational security. For digital asset custodians and infrastructure providers, achieving FIPS 140 compliance demonstrates a commitment to robust security practices for hardware security modules and other cryptographic components that protect private keys and sensitive data. This certification is a benchmark for security assurance, particularly in institutional contexts.
Context ∞ FIPS 140 compliance is a significant consideration for institutional adoption of digital assets, as it provides a recognized standard for cryptographic security essential for regulatory acceptance and risk management. The discussion often involves the varying levels of certification and the technical challenges of integrating FIPS-validated modules into diverse blockchain architectures. Future requirements may see FIPS 140-3 becoming the prevailing standard, pushing for even higher security assurances in hardware and software components securing digital assets.