United States-based crypto startup Curv has raised $6.5 million in seed funding to launch a cloud-based, private key-less digital wallet to be used by financial institutions. This news comes via a press release from the company earlier yesterday.
As per the release, the seed round was led by Digital Currency Group, a digital asset investment company, and Team8, an Israeli cybersecurity company. Monex Group, Jump Capital, Flybridge Capital, and Liberty City Ventures also participated in the round.
Curv notes that large financial institutions have hesitated to enter the cryptocurrency space “because of the lag, operational complexity, and single point of failure associated with the private keys needed to sign blockchain transactions.” Curv’s solution to this problem is to eliminate the concept of private keys with a new type of cryptography that allows for transactions to be signed in a simple and distributed way.
With this new technology, Curv aims to allow institutions and enterprises to safely adopt cryptoassets and blockchain applications.
Said co-founder and CEO of Team8 Nadav Zafrir of Curv’s technology:
“Curv is solving the eternal trade-off between security and availability. No longer do institutions or enterprises need to maintain physical security that doesn’t scale or hot wallets that are difficult to integrate and secure. Curv gives them a single solution that does it all.”
Instead of using private keys, the digital wallet will use multi-party computation protocols (MPCs) — a complex subcategory of cryptography with its roots in “mental poker” in the 1970s. Instead of hot wallets (internet-connected) and cold wallets (not internet-connected), a “scalable, software-only service, cloud-based service” will be used.
In an interview with Fortune magazine published today, Curv’s CEO Itay Malinger called this novel technology a “breakthrough”:
“Five years ago it would have taken a long time and lots of network traffic to do this. The breakthrough is that the math can be brought down to a sub-second calculation. That means it’s possible to do something through a cloud deployment.”
The effectiveness of Curv’s technology remains to be seen, but this type of innovation is surely a positive sign for the crypto space overall.