• Fordefi, a crypto wallet company, raised $10 million in funding from Electric Capital and Paxos.
  • The company has expanded its MPC wallet self-custodial offering to retail platforms, such as exchanges and Fintech platforms.

Crypto wallet firm Fordefi raised $10 million in venture capital investment, aiming to solve one of the biggest pain points in crypto by expanding its institutional-focused wallet offering to retail-facing platforms, the company told CoinDesk in an exclusive interview.

Electric Capital led the fundraising, and Paxos & Alchemy joined as new investors. The investment was made after a seed capital raise of $18 million in November 2022, with Lightspeed Ventures Pantera Capital and Jump Crypto among others.

Retail and institutional crypto investors have suffered billions in losses in the last few years due to exploits in decentralized finance applications (DeFi), or because they lost access to digital assets on platforms such as FTX that collapsed.

Fordefi’s self-custodial wallet uses multi-party computation to divide a private key between multiple parties. This eliminates the single point of failure and makes crypto safer, according to Josh Schwartz. MPC wallets make it harder to hack, and interaction with DeFi applications is less risky.

MPC explained: A bold new vision for securing crypto money

The company has already signed up institutional investors like Pantera Capital and Flare Network, as well as DeFiance Capital and Keyrock to its MPC wallet, and secured more than $3 billion worth of blockchain transactions.

Fordefi now offers wallets that are owned by the user (self-custodial wallets) directly in their applications.

In a press release, Curtis Spencer said that “Fordefi is changing the game in terms of safe institutional access to DeFi, crypto, and user policies by providing novel tools like MPC, User Policies, and Transaction Simulation.” Spencer, cofounder and general partnership at Electric Capital. “Their wallet-as a service offering extends their leading industry technology to any business that wants to give their customers the best combination of security and user-experience to get on-chain.”

Aoyon A. Ashraf is the editor.