Vaultody Milestones: UTXO Automation Vaults and Polygon Support

Overview of the Latest Vaultody Platform Milestones

Vaultody has reached two important milestones that substantially expand what institutional clients can do with digital assets. First, Automation Vaults now support a broad set of UTXO-based blockchains, including Bitcoin and several major forks. Second, the Polygon network has been integrated into General Vaults, enabling low-cost, high-throughput operations on one of the most widely used Ethereum scaling solutions.

Together, these enhancements give exchanges, banks, fintechs, and Web3 businesses more control over how they automate transactions, manage treasury flows, and optimize network fees across different blockchain models.

UTXO Protocols Now Available in Automation Vaults

Vaultody Automation Vaults are designed to let institutions codify their operational policies in the form of automation rules. With the addition of UTXO support, those rules can now be applied to some of the most important networks in crypto.

The newly supported UTXO blockchains in Automation Vaults include, among others:

• Bitcoin (BTC)
• Bitcoin Cash (BCH)
• Litecoin (LTC)
• Dogecoin (DOGE)
• Dash (DASH)
• ZCash (ZEC)

This expansion allows institutions to automate storage, transfers, and internal routing for a much wider range of assets without sacrificing governance or security.

Why UTXO Support Matters for Institutional Automation

Account-based blockchains (such as Ethereum) track balances at the account level. In practice, this often means that every new address an institution uses for deposits or withdrawals must be linked and managed explicitly. That overhead compounds quickly across many customer accounts and operational wallets.

UTXO-based blockchains work differently. In a UTXO model, each transaction consumes unspent outputs and creates new ones. Once an institution has provisioned UTXO addresses inside an Automation Vault, Vaultody can automatically discover and process the associated unspent outputs, without requiring the operations team to manually link every address.

For large operations this offers several advantages:

• Less manual address management and fewer chances for operational error.
• More predictable automation across multiple addresses and transaction patterns.
• Better alignment between vault policies and how UTXO transactions are actually constructed on-chain.

How Automation Vaults Work with UTXO Assets

Automation Vaults let you define rules that govern how assets move between addresses inside the vault. Typical examples include:

• Automatically sweeping balances above a threshold from hot wallets to cold or warm storage.
• Routing incoming deposits to dedicated treasury or settlement accounts.
• Enforcing approval policies or time-based triggers before funds are released.

With UTXO support, those rules apply not just to account-based chains but also to UTXO networks. Vaultody’s engine detects relevant unspent outputs and executes your automation logic without repeated manual intervention, improving both efficiency and consistency in day-to-day operations.

Understanding UTXO Protocols in an Institutional Context

Unspent Transaction Output (UTXO) protocols underpin many of the earliest and most systemically important blockchains, including Bitcoin and Litecoin. Rather than maintaining a single balance per address, these networks track discrete outputs that can be spent or remain unspent.

From an operational perspective, each incoming transaction creates new UTXOs, and each outgoing transaction consumes one or more existing UTXOs. The sum of the inputs must match the sum of the outputs plus any transaction fees, which prevents new coins from being created out of thin air.

For institutions, this structure has specific implications:

• Wallet design must consider UTXO selection strategies to avoid bloated transaction sizes and elevated fees.
• Automation logic should be aware of how many UTXOs are being aggregated or fragmented over time.
• Compliance and reporting systems benefit from visibility into each individual UTXO flow.

By integrating UTXO-awareness directly into Automation Vaults, Vaultody helps operations teams manage these complexities while still benefiting from rule-driven, policy-based automation.

Polygon Blockchain Integration into General Vaults

The second major milestone is the integration of the Polygon network into Vaultody General Vaults. Polygon is an EVM-compatible scaling solution that brings faster confirmations and significantly lower fees compared to mainnet Ethereum, while maintaining compatibility with the existing Ethereum ecosystem.

With Polygon available in General Vaults, institutions can:

• Custody and move assets natively on the Polygon network.
• Align treasury operations with DeFi, gaming, and Web3 activity already happening on Polygon.
• Leverage a familiar EVM environment while optimizing cost and performance.

Why Polygon Was Prioritized

Several factors made Polygon one of the first chains to be onboarded after the core set of networks:

• High client demand: Many Vaultody customers requested Polygon as a priority due to its importance in DeFi, NFTs, gaming, and tokenization projects.
• EVM compatibility: Polygon is fully compatible with Ethereum tooling and smart contracts, which simplifies integration and reduces friction for teams already building on Ethereum.
• Operational efficiency: Lower gas fees and higher throughput help institutions control operating costs, particularly for high-volume or micro-transaction use cases.

Next Steps for Polygon Across Vaultody Solutions

The current integration focuses on General Vaults, but it is the first step toward full Polygon coverage across the platform. Vaultody’s roadmap includes:

• Adding Polygon as a supported network in Automation Vaults, enabling rule-based workflows on Polygon assets.
• Extending Polygon support to Smart Vaults, Vaultody’s MPC-powered solution for advanced digital asset governance.

Once this is complete, institutions will be able to design and enforce a unified policy framework for Polygon that spans custody, automation, and complex approval logic.

Upcoming Blockchain Integrations on the Vaultody Roadmap

Beyond UTXO support and Polygon, Vaultody is actively expanding its protocol coverage to match institutional demand across ecosystems. Among the blockchains currently on the development roadmap are:

• Solana
• Base
• Avalanche
• Arbitrum
• Sui

These integrations are planned across the three main vault types — General Vaults, Automation Vaults, and Smart Vaults — enabling institutions to orchestrate complex, cross-chain operations from a single non-custodial infrastructure layer.

What These Milestones Mean for Institutions

Supporting UTXO protocols in Automation Vaults and integrating Polygon in General Vaults are both part of Vaultody’s broader strategy: to provide a comprehensive, programmable, and secure foundation for institutional digital asset operations.

In practice, these changes translate into:

• Broader asset coverage: Institutions can automate and manage more of the assets that matter to their business, from Bitcoin to Polygon-based tokens.
• Greater operational efficiency: Automated UTXO handling and low-fee Polygon transactions reduce manual workload and on-chain costs.
• Stronger governance: All new integrations are available within Vaultody’s policy-driven, MPC-based framework, keeping security and compliance at the center of every workflow.

If your organization is evaluating how to streamline multi-chain custody, treasury, or product infrastructure, these upgrades make it easier to do so within a single, unified platform.

Next Steps and How to Engage with Vaultody

Institutions interested in UTXO automation or Polygon support can:

• Review Vaultody’s technical resources on UTXO optimization and vault automation.
• Discuss integration details with Vaultody’s team, including security, compliance, and API-level requirements.
• Run a pilot deployment of Automation Vaults or Polygon-based General Vaults tailored to their specific use case.

For detailed guidance on configuration, network coverage, or roadmap timelines, contact the Vaultody team or request a call to explore how these capabilities fit into your digital asset strategy.