Blockchain startup Blockdaemon acquires digital asset security company Sepior

by Arthur · July 20, 2022

Blockchain infrastructure provider Blockdaemon announced today that it has acquired Sepior, a company that secures digital assets such as cryptocurrencies using cryptographic key management solutions.

Blockdaemon empowers businesses to securely manage and manage their own crypto assets by providing the necessary infrastructure to run their own blockchain asset management. It is particularly aligned with institutional partners such as payment processors, finance and banking addressing security needs when entering crypto.

Sepior addresses these needs by providing high security capabilities for digital asset wallets using what is called multi-party computation, or MPC, key management and protection technology. This allows a third party to share custody of digital assets, requiring multiple people to approve transactions before they happen, reducing the chances of theft and hacks.

By joining Blockdaemon, Sepior’s team of experienced cryptographers and industry experts will add their knowledge to the platform and accelerate ecosystem growth.

“The ability to properly secure private keys is a cornerstone of the multi-billion dollar institutional crypto-finance industry,” said Konstantin Richter, Blockdaemon founder and CEO. “With this acquisition, we are now able to advance the distribution of trust, identity and privacy for keys at scale.”

In 2021, $3.2 billion worth of cryptocurrency was lost to theft, according to a report by Chainalysis – an increase of approximately 516% since 2020. These thefts occur when the private cryptographic keys that protect the wallets that store the digital assets are compromised and unauthorized. users gain access.

With the addition of Sepior, Blockdaemon’s clients will be able to build their own wallet services, protect keys within decentralized applications and provide security with multi-person transaction signing.

“Integrating advanced MPC into Blockdaemon’s portfolio opens up new uses for our technology that will allow us to serve our customers with even better security solutions for digital assets,” said Ahmet Tuncay, former CEO of Sepior.

Tuncay will join Blockdaemon as Head of MPC Digital Asset Security and lead the team managing the multi-party private key protection solution for institutional partners.

“The Sepior team brings unparalleled research and credentials in MPC technology and will help us continue to build out a robust, feature-rich ecosystem with our partners,” Richter added.

This purchase is the fourth successful acquisition in the past two years for Blockdaemon, including non-fungible token startup Anyblock, cryptocurrency staking platform Lunie, and blockchain infrastructure and node management company Gem.