MPC Wallet Fordefi raises $10 million in funding to strengthen cryptocurrency security on retail platforms
Posted: February 13, 2024 12:10 PM Updated: February 13, 2024 12:10 PM
Correction and fact check date: February 13, 2024, 12:10 p.m.
briefly
Fordefi has raised $10 million in funding to expand the reach of its MPC cryptocurrency wallet for retail trading and fintech platforms.
Multi-party computation (MPC) wallet Fordefi recently raised $10 million in funding in a funding round led by Electric Capital, Paxos, and Alchemy. The company plans to use the newly acquired funds to expand the reach of its self-hosted MPC wallet by integrating the product into retail platforms, including trading platforms and fintech platforms.
MPC technology eliminates single points of failure by dividing a single private key between multiple parties. According to Josh Schwartz, CEO and co-founder of Fordefi, MPC wallets are more resistant to hacking attempts, contributing to reducing risk when interacting with decentralized finance (DeFi) applications.
The company is expanding its services by introducing wallet-as-a-service (WaaS) products tailored to retail platforms such as exchanges, fintech platforms, and Web3 businesses. The goal of this initiative is to provide these platforms with the ability to integrate self-managed wallets directly into their applications, giving users greater control and ownership of their digital assets within the platform.
“Fordefi is changing the game for institutional secure access to DeFi and cryptocurrencies by providing new tools for MPC, user policies, and transaction simulation. Our new Wallet-as-a-Service (WaaS) offering extends our industry-leading technology to any business that wants to have the best combination of security and user experience for their customers to access their chain,” said Curtis Spencer, co-founder and general partner. Electric Capital in a written statement.
The new investment follows the company’s $18 million seed capital raising in November 2022. Notable participants in the funding round include Lightspeed Ventures, Pantera Capital, Jump Crypto, Electric Capital, Alameda Research, Castle Island, Illuminate Financial, PayPal Alumni Fund, Nima Capital, Digital Currency Group, Defiance Capital, StarkWare, and many others.
Fordefi has successfully engaged institutional investors including Pantera Capital, DeFiance Capital, Keyrock, and Flare Network to adopt its wallet. Notably, the company’s wallet has facilitated over $3 billion in blockchain transaction volume, highlighting its growing traction and adoption in the market.
Growing preference for MPC wallets marks a turning point in cryptocurrency security
MPC wallets are becoming increasingly preferred in the cryptocurrency space due to their increased security, especially when compared to alternative storage methods such as cold storage, hot storage, and hardware wallets. This surge in popularity comes as a result of the significant financial losses cryptocurrency investors have suffered over the past few years from abusing DeFi applications or losing access to digital assets on platforms such as cryptocurrency exchange FTX.
Recently, Bitget, a cryptocurrency exchange and derivatives platform, launched its own wallet service that integrates multi-party computing (MPC) technology with the goal of strengthening security and improving key management for users accessing the platform.
With recent investments and a focus on providing a retail platform with enhanced security features, Fordefi is at the forefront of transforming security and user experience in the rapidly evolving cryptocurrency and decentralized finance landscape.
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Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through her work with VCs, notable cryptocurrency projects, and science writing. You can contact us at (email protected).
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alice davidson
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through her work with VCs, notable cryptocurrency projects, and science writing. You can contact us at (email protected).
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