In the XRP Ledger, financial institutions typically use multiple XRP Ledger addresses to minimize the risk associated with a compromised secret key. The industry standard is to separate roles as follows: * One **issuing address**, also known as a "cold wallet." This address is the hub of the financial institution's accounting relationships in the ledger, but sends as few transactions as possible. * One or more **operational addresses**, also known as "hot wallets." Automated, internet-connected systems use the secret keys to these addresses to conduct day-to-day business like transfers to customers and partners. * Optional **standby addresses**, also known as "warm wallets." Trusted human operators use these addresses to transfer money to the operational addresses.