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Gemini Acquires Custosy Startup ShardX To Enhance Speed And Scale Of Crypto Transfers

June 9, 2021 3:37 pm
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Gemini Acquires Custosy Startup ShardX To Enhance Speed And Scale Of Crypto Transfers

What Happened: Winklevoss-owned crypto exchange Gemini has acquired crypto custody technology startup ShardX for an undisclosed sum.

According to an announcement from Gemini earlier today, the exchange plans to integrate Shard X’s MPC technology into its multi-site key management and signing infrastructure.

Gemini said that the integration would markedly increase the speed with which they can transfer customer assets and provide support for new asset listings and usage on the Gemini platform.

Shard X will become a part of Gemini’s UK affiliate.

The exchange’s COO told The Block that the deal was advised by an internal strategy team that focuses on mergers and acquisitions, but did not disclose the deal's financial terms, including whether this was equity, cash, or a mix of both.

Why It Matters: ShardX claims that its Multi-Party Computation (MPC) cryptographic technology eliminates the trade-off between Cold Storage and Hot Wallets.

Cold Storage is a way of holding crypto tokens offline, and while it is secure, it is slow when it comes to transfers.

Hot Wallets, on the other hand, are connected to the internet, and while they are fast, they are also vulnerable.

The team has developed a portable MPC implementation that aims to run in high-security environments, such as hardware security modules, ensuring the highest integrity and secure processing of private key fragments that protect digital assets,” said Gemini.

Read also: Gemini Review

With over $30 billion in crypto assets under custody, Gemini’s custody offering serves both retail and institutional investors, and the exchange expects the new technology will enhance its security.

The acquisition is Gemini’s third after NFT Marketplace Nifty Gateway in 2019 and crypto credit card company Blockrize earlier this year.

Image: TechCrunch via Wikimedia

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