VCTRADE, a cryptocurrency exchange owned by SBI Holdings Group, a top financial firm in Japan, has indicated that it will use a proprietary technology to secure its exchange wallet.
The technology will be supplied by Sepior, a blockchain security firm based in Aarhus, Denmark. Sepior offers security products for cryptocurrency custodial wallets, cloud-based SaaS, public or private blockchains, etc.
According to a press release by Sepior, the two firms have agreed “to license Sepior’s Threshold-Signature Wallet Security technology and to jointly develop proprietary wallet to secure the online contents and transactions on SBI’s Virtual Currencies exchange platform, VCTRADE.”
This technology employs a multiparty computation (MPC) approach to provide the much needed level of encryption key protection “available for cryptocurrency wallets.”
With cryptocurrency exchanges in Japan leading in loses from hacks, the attention to secure exchange wallets is being given extra consideration both by exchanges and financial regulators in Japan and over the globe.
SBI’s move to use a multiparty computation approach will raise the bar for cryptocurrency exchange security “in part through more effective key management and protection.”
Yoshitaka Kitao, President and CEO, SBI Holdings, observed that “after extensive investigation, our security research team determined threshold signatures based on multiparty computation (MPC) offered our desired level of security, performance, and scalability needed to manage transactions for our growing SBI Virtual Currencies customer base.”
Kitao continued to note that Sepior has in the past applied the same technology to secure online transaction and eliminating the need to rely on a single trusted party.
VCTRADE is one of a kind crypto exchange since it’s backed by a leading financial firm in Japan and has an operating license from the country’s financial watchdog.
Do you think SBI’s usage of a proprietary technology to secure its exchange wallet will push other exchanges to employ a similar technology to minimize the possibilities of a security breach on their platforms?
Let us know your thoughts in the comments section below.