Crypto Custodian, Curv, Raises $26M Led By Commerzbank, Digital Currency Group, and Coinbase Ventures
Crypto custody firm, Curv, which claims to enhance the multi-signature technology through a “secrecy computational model,” closed a $23 million Series A funding round. They will use the new capital to expand its business to global clients, improve its secrecy features, strengthen its technological infrastructure, and grow its team.
The funding was led by Digital Currency Group (DCG) and CommerzVentures, subsidiary of one of Germany’s leading banks, Commerzbank, which deals with the investments of the bank. Other participants in the round include Coinbase Ventures, Tokyo-based Digital Garage Lab Fund, and Team8, a cybersecurity firm headquartered in Israel.
Curv is a cryptography startup that raised $6.5 million in a seed funding round in 2018, launching its International Digital Wallet service providing users with security, independence, and flexibility in its digital asset storage. The firm uses the multi-party computation (MPC) cryptography system to keep funds safe.
MPC generates random private keys and shares them across a group of designated authorities instead of the multi-signature technology that secures the wallet through one fixed private key and hard computations.
On the significance of employing MPC over multi-signature technology, Curv CEO, Itay Malinger said,
“There is not any point in time or space where there will actually be a private key. MPC breaks that paradigm, so you don’t have additional layers of security like guards or cameras or World War II bunkers that can take 24 hours to get at.”
Real industry adoption
Curv is experiencing sustained growth in the number of clients, including top industry players such as Franklin Templeton (to secure and custody tokenized shares), trading platform eToro and trading desk, Genesis Trading, also owned by DCG. Itay declined to give too much on its future partners and customers but said Curv is speaking to several exchanges and institutional players on Wall Street.
The funding will also support tX, a group of engineers developing on Curv, to ensure the platform is ready for both crypto-focused and traditional financial institutions in the international markets.