Gemini, a cryptocurrency exchange and custodian, has bought crypto startup Shard X for an undisclosed sum of money. The latest deal is part of the firm’s acquisition spree, which saw NFT platform Nifty Gateway and crypto credit card company Blockrise become part of Gemini. Shard X is a London-based startup that creates technology for crypto custodians to enhance the security of their services.
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
Gemini Will Use Shard X Tech to Increase Speed of Asset Transfers
In its announcement, Gemini revealed that it will use multi-party computation (MPC) technology, offered by Shard X, to boost asset transfers’ speed and the usage of assets on its platform. Shard X claims to be the first company to provide MPC technology on hardware security modules (HSMs), a class of special computers meant to protect susceptible files. According to Shard X, the combination of MPC and HSMs guarantees the accessibility of online wallets and the security of offline storage.
Speaking on the deal, Gemini COO, Noah Perlman said, “Integrating Shard X’s MPC technology into Gemini’s custody enables us to meet the current demand for fast withdrawals, interacting with DeFi staking, or the transferring of digital assets with greater efficiency.”
Gemini denied disclosing the terms of the deal. And while Perlman declined to share the financial terms of the purchase, he stated that the company’s internal strategy team played a key role in making the purchase.
Shard X Technology to be Employed With Gemini’s Security
Shard X uses a faster and more secure cryptographic technology called MPC. The technique doesn’t store complete private keys and breaks them into shards for distribution among parties to carry out a transaction. This technology will now work in tandem with Gemini’s own security services such as role-based protocols for governance, biometric access controls, and physical security.
Shard X was founded in 2018 by Yaniv Neu-Ner, Nikita Lesnikov, and Navaho De Wet, to create a secure cryptosystem. Under the terms of the acquisition, the startup’s three founders will join Gemini’s UK affiliate.