ShapeShift AG just announced that has acquired Seattle-based KeepKey, a secure hardware wallet for digital assets such as Bitcoin and Ethereum.
The vertical integration of KeepKey and ShapeShift enables users to safely store assets on a KeepKey device, while trading these assets directly over the ShapeShift API from the device’s interface.
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.
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,” said ShapeShift Founder and CEO Erik Voorhees.
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,” concluded Voorhees.