In a development that marks the growing maturity and innovation of the market, Swiss digital currency exchange Shapeshift AG has acquired KeepKey Holder LLC, a digital wallet maker, in an all-bitcoin deal.
The terms of the deal were not disclosed but this acquisition has been innovative in more than one way – this is probably the first major acquisition deal to be completed purely using bitcoins.
One of the major drawbacks of the crypto industry is the fact that the sending and receiving of cryptocurrency requires a digital wallet which is always located online.
So, a user has to create a wallet with a digital wallet provider and then move to the exchange to send or receive digital currency to that wallet. This is not only a cumbersome process, it also exposes the client and the wallet to a lot of security risks.
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Providing a Smooth Exchange
Shapeshift hopes to overcome this problem by having both the wallet and the exchange in the same place and by using a hardware wallet, thus providing a seamless experience to its clients and also improving the security of these digital assets.
The Chief Operating Officer of Shapeshift, Erik Voorhees, said: “Amid heightened interest in the concept of digital currencies, a simple, user-friendly cold storage wallet with the ability to facilitate trading or exchanging for another crypto-currency is key to wider adoption.”
Digital currencies are usually stored online on a laptop or similar such instrument, which opens them up to possible theft and hacking. The company hopes to overcome this problem by using a cold-storage wallet – storing the digital assets offline will reduce the risk of them being stolen.
Shapeshift believes that the KeepKey wallet will be able to help them provide a smooth experience for its users, and improve its volumes and margins.