Japan’s financial services giant, the SBI Group, has entered into a partnership with a blockchain security startup, Sepior ApS to develop a proprietary digital wallet to secure the online transactions and contents of its crypto exchange VCTRADE. The SBI Group announced in its agreement to license Sepior’s Threshold-Sig Wallet Security technology.
In the last couple of years, the worldwide interest in cryptocurrencies has surged. However, owing to cyber attacks on cryptocurrencies, there have been major losses. This has created legitimate concerns about the security measures that are implemented by the crypto exchanges. The vast majority of hacking events are due to insufficient key security. Hence, the SBI is setting new standards in terms of crypto exchange security by implementing effective key management and protection using Sepior’s Threshold Wallet technology.
Crypto exchange VCTRADE was launched by SBI Holdings’ subsidiary SBI Virtual Currencies in June. The exchange became Japan’s first bank-backed, government-licensed crypto exchange. Sepior’s threshold technology uses signatures based on multiparty computation. Multiparty computation is a cryptographic method that allows a secret to be shared between multiple parties without revealing the same, in order to provide a high level of wallet security.
Sepior stated that its wallet technology rules out the need for any entity or device to process the entire private key at any time, thereby making it impossible for an attack resulting in key theft. SBI Holdings purchased a 40 percent stake in CoolBitX, a Taiwan-based manufacturer of cold wallets, in yet another move related to wallet technology, as stated in the CoinDesk report.
Speaking on Sepior’s partnership with the SBI Group to develop a digital wallet for crypto exchange VCTRADE, CEO Ahmet Tuncay said that they are absolutely thrilled about this association. With its institutional-grade custodial services, the SBI Virtual Currencies will be setting new industry benchmarks in terms of performance, scale, security and privacy for crypto exchanges. As stated in the Sepior press release, the company is proud to become SBI’s trusted technology provider and development partner in this endeavor.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]