Feature Request: Secure API Key Storage for LLM Models

[santosha001]

Validations

• I believe this is a way to improve. I'll try to join the Continue Discord for questions
• I'm not able to find an open issue that requests the same enhancement

Problem

Currently, the Continue extension requires users to specify API keys for different LLM models in the config.json file in plain text. This poses a security risk, as sensitive credentials are stored in an unencrypted format.

Additional Context

If there’s already a recommended way to handle this securely, please advise. Otherwise, implementing one of the above solutions would improve security for all users.

Thanks for considering this feature request!

Solution

Proposed Solution

Would it be possible to:
1. Allow specifying an external file for API keys (e.g., .env or a secure config file)?
2. Support environment variables to load API keys dynamically?
3. Integrate with secure credential managers (e.g., OS keychain, vaults, or secret management tools)?

Benefits
• Reduces the risk of accidental credential leaks.
• Enhances security by keeping sensitive information separate from the main configuration file.
• Aligns with best practices for API key management.

[lamira-the-human]

Environment variables for API keys definitely help, but they still give the agent full access to your OpenAI account — any bug, injection, or drift can rack up unbounded charges under your real key.

One approach that avoids this entirely: instead of storing your OpenAI key, use a gateway credential tied to a funded sub-account. Each sub-account is isolated, has a wallet balance, and stops spending when the balance hits zero (HTTP 402). Your real API key never leaves your infra.

ATXP (https://atxp.ai?utm_source=github&utm_medium=organic&utm_campaign=growth-ceo) does this with an OpenAI-compatible gateway. For Continue:

{
  "models": [
    {
      "title": "Claude via ATXP",
      "provider": "openai",
      "model": "claude-sonnet-4-6",
      "apiBase": "https://gateway.atxp.ai/v1",
      "apiKey": "${ATXP_CONNECTION}"
    }
  ]
}

ATXP_CONNECTION is a per-agent credential with no access to your billing account. Fund it with $20, it stops at $20. If it leaks, the blast radius is the wallet balance, not your entire API account.

npx atxp agent register creates the credential in one step. Quickstart: https://github.com/lamira-the-human/atxp-agent-quickstart?utm_source=github&utm_medium=organic&utm_campaign=growth-ceo

[scottrbaxter]

@lamira-the-human where this might be useful to OpenAI customers (I'm not), your proposal seems like an issue with a single vendor, and completely unrelated to this feature request. Doesn't your issue persist whether/not credentials as a variable or plain text in a config file?