Cryptocurrency company Gemini has acquired cryptocurrency storage startup Shard X.
The acquisition of Gemini, whose financial value was not disclosed, was not disclosed.
News of the acquisition surfaced hours before Wednesday morning, telling Gemini that Shard X’s multiparty computing (MPC) technology will help increase the speed at which customer assets can be moved and increase the use of assets on its platform.
Said “Noah Perlman,” Operations Manager “Gemini”:
Incorporating Shard X’s MPC technology into Gemini’s custody enables us to meet the current demand for fast withdrawals, interact with stakes in DeFi protocols, or move digital assets more efficiently.
MPC is a crypto technology that is said to be fast and safer.
In MPC, the private keys are never fully generated, MPC breaks the private keys into pieces and distributes them among different parties to carry out the transaction.
Shard X, in particular, uses MPC technology in Entrust nShield Hardware Security Modules (HSMs).
The company claims to offer the advantages of each of these technologies, ie access to online hot wallets and offline cold storage.
Shard X was founded in 2018 by Yaniv Nuner, Nikita Lenikov and Navajo de Watt in London.
With the acquisition by Gemini, all three members, the entire number behind the company, will join Gemini’s UK subsidiary, Perelman said.
Perelman declined to disclose the financial terms of the deal, including whether the acquisition was made via equity, cash, or a combination of the two.
But he said the deal was being advised by an internal strategy team focused on mergers and acquisitions.
This is Gemini’s third acquisition after buying NFT Market Nifty Gateway in 2019 and crypto credit card company Blockrize earlier this year.
Cryptocurrency deals, especially in the field of cryptocurrency custody, are growing very fast.
Last month, Galaxy Digital agreed to buy BitGo for $1.2 billion in cash and stock, the first $1 billion deal in the crypto industry.
In March, PayPal acquired Curv, a cryptocurrency custodian.
As for Gemini, it is looking to invest in more companies, and according to Perelman, Gemini recently launched an investment fund aimed at supporting early-stage crypto projects and startups.