What Goes in Your Operating Agreement: Addresses Yes, Device Details No #
List wallet addresses in your operating agreement. Skip device serial numbers and specific hardware identifiers. The distinction matters because addresses create legal clarity while device details create security risks.
Wallet addresses are already public information. Anyone can look up a Bitcoin or Ethereum address on the blockchain and see its transaction history. Including addresses in your operating agreement doesn’t reveal anything that isn’t already visible to the world. What it does is create documented proof that your LLC owns those specific addresses as of a specific date.
This proof matters when you need to demonstrate LLC ownership. Someone challenges whether your LLC actually owns the cryptocurrency? You produce the notarized operating agreement showing wallet addresses listed in the schedule of assets. The blockchain confirms those addresses hold cryptocurrency. You’ve established clear ownership documentation connecting the LLC to the assets.
Device serial numbers serve no legal purpose and create security vulnerabilities. Knowing you use a D’Cent cold wallet with a specific serial number gives an attacker information they can use. They know what hardware you’re using, potentially when you bought it, and details that might help them socially engineer access or target you physically. The serial number proves nothing legally because custody of the device doesn’t equal ownership of the assets.
Devices change. You might upgrade from one hardware wallet to another. You might switch custody methods entirely from self-custody to institutional custody. If your operating agreement references specific device serial numbers, you’re updating it constantly as your custody approach evolves. Wallet addresses remain the same regardless of what device holds the private keys.
Your operating agreement should reference custody standards without specifying exact devices. Write provisions requiring cold storage for assets above a certain threshold, prohibiting exchange custody beyond working balances, and mandating specific security practices. You’re establishing the rules without locking yourself into particular hardware that might become obsolete.
Signing authority belongs in the operating agreement. Who has the power to initiate transfers? Is it single signature or multi-signature? What approvals are required for different transaction sizes? This creates clear governance rules that don’t depend on which specific device you’re using to execute signatures.
The schedule of wallets attached to your operating agreement should include wallet addresses, the cryptocurrency held in each address, approximate balances as of the schedule date, and the custody method used. That gives you legal documentation of ownership and custody practices without revealing sensitive details like device serial numbers or seed phrase locations.
Update the schedule when wallet addresses change or when you add significant new holdings. Get the updated schedule notarized to maintain timestamped proof of your asset transfers. You’re creating a paper trail showing how and when assets moved into LLC ownership.
Never include private keys, seed phrases, or recovery information in your operating agreement. These are the actual keys to your cryptocurrency. If your operating agreement gets shared with a bank, an exchange, or ends up in a legal proceeding, you’ve just exposed the information someone needs to steal your assets. Private keys stay in secure offline storage, never in operating agreements or any document that might be shared with third parties.
The operating agreement can reference where private keys are stored in general terms. You might specify that private keys are maintained in cold storage split between two secure locations with specific family members having access to each location. That creates succession planning without revealing the actual keys or their exact locations.
Some operating agreements include provisions about key escrow or recovery procedures. You might specify that seed phrases are split into parts using Shamir Secret Sharing and distributed to three trustees who can reconstruct the seed phrase with any two parts. The operating agreement describes the process without including the actual seed phrase parts.
Device location shouldn’t appear in the operating agreement either. Specifying that your cold wallet is in a safe deposit box at a specific bank branch gives someone a target. Keep location details in separate private instructions accessible to your successor trustee or family members who need to access assets if something happens to you.
Most wealth management firms like Digital Wealth Partners focus on investment strategy and portfolio growth. They’re not advising on operating agreement provisions for digital asset custody. That requires specific expertise in cryptocurrency security and legal documentation.
Digital Ascension Group handles operating agreement customization including determining what information belongs in the document versus what stays in separate private storage. We draft provisions that create legal clarity without compromising security. We’re also coordinating between your legal documentation, your custody practices, and your succession planning to make sure everything works together.
Your D’Cent cold wallet executes the custody standards and signing authority defined in your operating agreement. The agreement establishes the rules. The hardware wallet enforces the security. These are complementary pieces of your asset protection structure.
The rule is simple. Include information that establishes legal ownership and governance. Exclude information that could help someone steal your assets. Wallet addresses establish ownership without security risk. Device serial numbers and private keys create risk without legal benefit.
Contact Digital Ascension Group to learn how our family office services can coordinate your complete financial picture.
