ShapeShift, a Swiss digital asset exchange, has purchased KeepKey, a Seattle-based secure hardware wallet for digital assets including bitcoin and ethereum.
The acquisition will enable the users to secure their assets on a KeepKey device during the process of trading the assets directly over the ShapeShift API from the interface of the device.
ShapeShift CEO Erik Voorhees said: “Security is of critical importance when it comes to holding and trading digital assets. One of our priorities has always been to make the exchange experience as safe and easy for users as possible, and our pairing with KeepKey enables us to provide an unmatched customer experience.
“Users can hold their coins on the hardware device and exchange them on demand within the wallet, without even visiting a website. When you pair the KeepKey hardware wallet with ShapeShift’s exchange, the experience is magical,” continued Voorhees.
KeepKey integrated ShapeShift’s API over a year ago, and supports Bitcoin together with a wide variety of popular digital assets including Ether, Litecoin, Dash and more. The firm will continue manufacturing and distribution of the device, providing the most secure storage wallet available with native support for trading all leading digital assets.
KeepKey chief technology officer Ken Hodler said: “This partnership will not only guarantee the future success of the KeepKey brand and product line, but joining the ShapeShift team will enable us to focus on continuing to work on developing better technology and security for crypto-holders."
ShapeShift has confirmed that the KeepKey brand and product line will remain the same, following high demand by users, and the acquisition will also provide increased capital for inventory and security expertise.
“Amid heightened interest in the concept of digital currencies, a simple, user-friendly cold storage wallet with native exchange functionality is one key to wider adoption.”, Voorhees added.
In simple terms, cold storage refers to keeping digital assets completely offline, disconnected from the Internet. Since Bitcoin, Litecoin, Ether, etc. are digital assets, when they are stored in online devices (such as a laptop or phone) there is increased risk of theft. Therefore by using KeepKey in conjunction with ShapeShift’s non-custodial exchange, a user’s attack surface is greatly diminished.
“With ShapeShift, users don’t need to leave funds at an exchange. With KeepKey, users don’t need to leave funds on any computer whatsoever. We see a future in which keys are kept on hardware, and non-custodial exchange occurs directly from the hardware.”, Voorhees added.
The KeepKey device is available directly from KeepKey.com, Amazon.com and other retailers listed on the KeepKey site.
On 1,500% year-over-year customer order growth, Swiss-based ShapeShift recently raised a$10.4m Series A investment round led by Berlin-based Earlybird Venture Capital, and released its second product, Prism, a digital asset portfolio platform in May.