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Curv: Secure crypto-custody methods without private key

If the trend towards institutionalizing the crypto market continues, it will need secure custody methods for digital assets. After all, the mathematical certainty of cryptocurrencies on the one hand is their great value proposition, on the other hand, the management of the private key requires some responsibility. The following applies: Not your key, not your coins, to German: Who does not control the private key, does not own his coins in the strict sense.

If you are really serious about the Bitcoin narrative of uncontrollable money, you have to manage your private keys yourself

This, one guesses, does not apply to the majority society. Giving your own assets into the supposedly safe hands of service providers such as banks seems convenient. The resulting tension between comfort and security has not been solved in the past. The management of the private key is still the single point of failure.

But there seems to be a solution on the horizon: According to a press release, the New York start-up Curv is working on the development of a so-called Multi-Party Computational Protocol, MPC for short. Behind it is a technology that can authorize cryptographic transactions without the use of private keys. The Curv Wallet should therefore cloud-based – and despite all concerns – be sure. If you want to know more about MPC, you can get started here (attention: english).

Funding round flushes $ 6.5 million into the fund

Research on the new custody method allows for a recently completed capital round. The US FinTech could collect 6.5 million US dollars. The collected funding Curv then wants to invest in the expansion of their Custodial Wallet, so a crypto wallet, which has primarily institutional customers such as banks in mind.

“Curv solves the eternal trade-off between security and availability [of crypto assets],” said Nadav Zafrir, co-founder and CEO of Team8, one of the investors in Curv. “Businesses no longer need to provide physical security that is not scaled or hot wallets that are difficult to integrate and secure. Curv gives them a single solution that can do it all” it says.

Product not yet ready for the market

The technology is still the maturity test. So far, financial firms like the eToro trading platform are experimenting with Curv’s MPC solution:

“eToro is convinced that all assets will be tokenized in the future. As we expand our portfolio of Digital Assets, we seek to collaborate with innovators such as Curv […]” said eToro product director Ronen Assia.

Secure custody methods for digital assets such as cryptocurrencies are likely to become increasingly important in the future. Finally, more and more financial institutions are announcing their entry into the crypto market. Reports on innovations like Curv’s should accelerate this trend even further.

Published inCryptocurrencies

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