Cryptocurrency Exchange Gemini Acquires Crypto Custody Firm Shard X
Cryptocurrency exchange Gemini has acquired cryptocurrency custody specialist Shard X.
Per an official blog post, Gemini disclosed that it would use Shard X's multi-party computation (MPC) technology to speed up its efficiency.
Gemini To Use Shard X’s MPC Technology
The technology would help increase the speed at which the exchange transfers customer assets on its platform, the New York-based firm said.
“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.” Gemini stated.
MPC is a type of cryptographic technology that is fast and secure. It breaks up private keys into shards or parts and distributes them between various parties to execute a transaction.
Shard X was founded in 2018 by Yaniv Neu-Ner, Nikita Lesnikov, and Navaho De Wet in London. The firm claims to be the first company to offer multi-party computation (MPC) on hardware security modules (HSMs).
This acquisition would enhance the security of Gemini’s crypto custody platform, which surpassed $30 billion of crypto assets under custody last month.
The addition of Shard X’s MPC will work in concert with all other aspects of Gemini’s custody offering, including Gemini’s key security, like role-based governance protocols, biometric access controls, and physical security.
It will also expand Gemini’s reach to decentralized finance (DeFi) and other applications. Basically, this acquisition is set to beef up Gemini’s custody tech.
The terms of the deals were not disclosed. However, the exchange’s Chief Operating Officer Noah Perlman revealed that Shard X would join Gemini’s UK affiliate.
Gemini was founded by brothers Cameron and Tyler Winklevoss in 2014. The company, which has more than 440 employees, is known for its regulated platform that allows users to buy, sell, store, and earn interest on more than 40 cryptocurrencies.
Shard X Joins Growing List Of Gemini’s Acquisitions
The Shard X deal is the third acquisition for Gemini in the last two years.
In November 2019, Gemini acquired the popular non-fungible tokens (NFTs) marketplace Nifty Gateway. The platform, which launched in 2018, facilitates nifty purchases for some of today's most popular crypto-games and applications, including OpenSea, Gods Unchained, and CryptoKitties.
Fast forward to January this year, Gemini also acquired crypto credit card company Blockrize to accelerate its plans of launching the Gemini Credit Card. A card that offers rewards in digital currencies.
Meanwhile, there have been a couple of crypto custody acquisitions lately. A notable one among them is Galaxy Digital’s $1.2 billion acquisition of crypto custodian BitGo and PayPal's acquisition of Curv.