Gemini acquires Shard X, developer of secure crypto-storage solutions

Gemini, the Bitcoin exchange, announced the acquisition of Shard X, a startup that develops solutions based on the confidential computing protocol multi-party computation (MPC). The deal will allow the trading platform to bolster the security of its custody service.

We’re excited to announce the acquisition of Shard X, a leading developer of secure multi-party computation cryptographic technology. Gemini will integrate Shard X’s MPC technology into our distributed, multi-site key management and signing infrastructure⬇️https://t.co/8gzAwuKvSH

— Gemini (@Gemini) June 9, 2021

Financial terms of the deal were not disclosed. The startup, founded in 2018, will become part of Gemini’s British arm.

MPC is the cryptographic protocol by which users can perform joint computations that depend on secret inputs of each participant. It allows splitting private keys into fragments distributed among trusted parties to execute a transaction.

The Shard X technology uses MPC implemented on Entrust’s nShield hardware security modules [Hardware Security Module]. As the startup claims, its solutions combine “the availability of hot wallets and the security of cold storage”.

According to the press release, Shard X’s developments will enable Gemini to increase the speed of client asset transfers, as well as enhance security and extend the custody service’s functionality.

“The integration of Shard X’s MPC technology into Gemini Custody will meet the current demand for fast withdrawals, staking tokens of DeFi projects and efficient transfers of digital assets,” said Gemini’s Chief Operating Officer Noah Perlman in an interview with The Block.

In April Gemini became a partner of the Bitcoin fund of BTG Pactual, the largest investment bank in Latin America. The exchange will provide custody and trading services to the group.