Security
What is Hardware security module?
HSM
A hardware security module is a specialized device or managed service that protects cryptographic keys and performs operations such as signing. It can reduce private-key exposure, but it cannot decide whether every requested operation is appropriate unless its policies receive and evaluate enough structured context.
A strong signing design validates transaction intent before the key operation and constrains the signer with independent policy where available. Access to signing APIs, key provisioning, recovery, and audit records should be limited and monitored.
A hardware boundary protects key material from some forms of extraction; it does not stop an authorized but compromised application from requesting harmful signatures unless policy controls constrain those requests.
Related
Definitions are educational and general. Nothing here is financial, legal or tax advice, and regulatory descriptions summarise frameworks that change — check the current rules for your jurisdiction before relying on them.