Security and trust are not optional when you’re building privacy-first infrastructure. Today, we’re excited to share an important milestone for Phala: Phala has successfully achieved both SOC 2 Type I compliant and HIPAA compliance. This dual certification milestone positions Phala as a uniquely secure platform capable of handling both enterprise workloads and sensitive healthcare data within a confidential computing environment.
What is SOC 2?
SOC 2 (Service Organization Control 2) is a widely recognized auditing standard developed by the American Institute of Certified Public Accountants (AICPA). This certification is particularly significant for cloud service providers, as it demonstrates a commitment to maintaining robust security practices that protect customer data and system integrity.
What is HIPPA?
HIPAA is a U.S. federal law that sets standards for protecting sensitive patient health information. It requires organizations that handle PHI to implement technical, physical, and administrative safeguards to ensure data security and privacy.
For cloud providers like Phala, HIPAA compliance means securing infrastructure, enforcing strict access controls, and signing Business Associate Agreements (BAAs) with healthcare customers. This confirms Phala can legally and safely handle PHI, enabling use in healthcare AI, medical research, telehealth, and other health-related applications.
Key Highlights from the SOC 2 Type I Report
Find the full report here.
Security by Design
Phala is built on Trusted Execution Environments (TEEs), including Intel TDX and NVIDIA Confidential Compute, providing hardware-level isolation. Data is encrypted at rest and in transit, with workloads kept confidential by default.
Access and Identity Controls
Phala enforces role-based access control, multi-factor authentication, least-privilege access, and formal onboarding and offboarding. Access is reviewed regularly and revoked promptly when no longer needed.
Ongoing Risk Management
The platform undergoes regular vulnerability scanning, annual independent penetration testing, centralized monitoring, and documented incident response procedures. No material security incidents were identified as of the audit date.
Enterprise-Grade Operations
Phala runs on enterprise-grade infrastructure with redundancy, backups, disaster recovery, and business continuity processes formally documented and reviewed.
Unlock Enterprises for AI Compliance
Completing SOC 2 Type I is an important step toward making Phala a trusted foundation for:
- Confidential AI models and agents for Fortune 500 and vertical AI industries
- Privacy-preserving data processing
- Regulated and security-sensitive workloads
- Fintech and Defi
- Empower AI startups to get deals from top enterprises
For customers, this audit provides independent confirmation that Phala takes security, governance, and operational discipline seriously—today, not just as a future goal.
Conclusion
As AI moves deeper into regulated domains like healthcare, security is no longer just about infrastructure—it’s about verifiable trust. SOC 2 Type I and HIPAA compliance matter because they bridge the gap between cutting-edge confidential computing and real-world regulatory requirements.
These certifications provide independent confirmation that Phala’s security controls are intentionally designed to protect sensitive data, not retrofitted after the fact. They give enterprises, researchers, and developers confidence that privacy-preserving AI workloads can run on Phala while meeting strict compliance expectations.
Security is not a one-time achievement. It’s an ongoing commitment, and this milestone reflects the foundation we’ve built to support the next generation of private, trustworthy computing.
