What happened: The Winklevoss-owned crypto exchange Gemini has acquired the crypto-custody technology startup ShardX for an undisclosed amount.

According to an announcement by Gemini, the exchange plans today to integrate Shard X’s MPC technology into its multi-site key management and signature infrastructure.

Gemini said the integration would significantly increase the speed at which they can transfer client assets and provide support for new asset listings and usage on the Gemini platform.

Shard X becomes part of Gemini’s UK subsidiary.

The exchange’s COO told The Block that the transaction was being advised by an in-house strategy team focused on mergers and acquisitions but did not disclose the financial terms of the transaction, including whether it was equity, cash, or a mix acted out of both.

Why it matters: ShardX claims that its Multi-Party Computation (MPC) cryptographic technology removes the tradeoff between cold storage and hot wallets.

Cold storage is one way of keeping crypto tokens offline, and while it is secure, it is slow when it comes to transfers.

Hot wallets, on the other hand, are connected to the Internet and fast, but also vulnerable.

The team has developed a portable MPC implementation that aims to run in high security environments such as hardware security modules and ensure the highest integrity and secure processing of private key fragments to protect digital assets, ”said Gemini.

Also read: Gemini rating

With over $ 30 billion in crypto assets under custody, Gemini’s custody offering serves both private and institutional investors, and the exchange expects the new technology to increase its security.

The acquisition is Gemini’s third after NFT Marketplace Nifty Gateway in 2019 and crypto credit card company Blockrize earlier this year.

Image: TechCrunch via Wikimedia

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