April 28, 2025 by In a recent funding round led by Electric Capital, Paxos, and Alchemy, Fordefi has acquired $10 million to further develop its self-hosted MPC wallet, integrating it into various trading and fintech platforms.

The unique MPC technology splits a single private key into multiple components held by different entities, thereby mitigating risks associated with a single point of failure. This makes MPC wallets significantly more secure against hacking attempts, which ultimately lowers risks when engaging with decentralized finance (DeFi) applications, according to Josh Schwartz, CEO and co-founder of Fordefi. Victoria d'Este Fordefi is broadening its service offerings by launching a wallet-as-a-service solution designed specifically for platforms that cater to consumers, including fintech initiatives and Web3 enterprises. This new offering aims to empower these platforms with the ability to seamlessly incorporate self-custodial wallets, giving users enhanced control and ownership of their digital assets.

"Fordefi is revolutionizing secure access for institutions to DeFi and cryptocurrency through innovative tools surrounding MPC, user policies, and transaction simulations. Their latest wallet-as-a-service launch extends their leading technology to any business looking to provide their customers with an optimal balance of security and user experience for engaging with blockchain technology,\" stated Curtis Spencer, co-founder and general partner at Electric Capital, in an official press release. April 28, 2025 This latest funding round follows their successful seed capital raise of $18 million in November 2022, with key investors like Lightspeed Ventures, Pantera Capital, Jump Crypto, Electric Capital, and others participating.

Fordefi has successfully attracted institutional investors such as Pantera Capital, DeFiance Capital, Keyrock, and Flare Network to adopt its wallet technology. Impressively, the wallet has enabled over $3 billion in blockchain transaction activity, indicating its growing acceptance and influence in the market.

The Increasing Popularity of MPC Wallets Signals a Significant Change in Crypto Security Practices

Crypto enthusiasts are increasingly gravitating towards MPC wallets due to their superior security when compared to traditional cold and hot storage methods as well as hardware wallets. This trend can be attributed to heavy financial losses incurred by investors from various exploits in the DeFi sector or cases where they lost access to their assets on platforms that faced disruptions.

Not long ago, a cryptocurrency exchange and derivatives platform rolled out its own wallet service featuring multiparty computation (MPC) technology, aiming to bolster security protocols and enhance key management for users accessing their platform.

With its recent funding and commitment to augmenting security for retail-facing platforms, Fordefi is positioning itself at the forefront of redefining security measures and user experiences in the fast-paced world of cryptocurrency and decentralized finance. by .

Please remember that the information on this page is not designed to provide, nor should it be construed as, legal, tax, investment, or financial advice. It's crucial to invest only what you can afford to lose and to seek independent financial counsel if you have any uncertainties. For more details, we recommend reviewing the terms and conditions as well as the support resources provided by the relevant issuer or advertiser. MetaversePost is dedicated to delivering accurate and impartial reporting; however, market conditions can change unexpectedly. Alisa Davidson Alisa, a passionate journalist at Cryptocurrencylistings, focuses on topics such as cryptocurrency, zero-knowledge proofs, investments, and the burgeoning world of Web3. With her focused attention on emerging trends and technologies, she ensures readers receive in-depth insights into the continuously advancing domain of digital finance.

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