The deal will allow ShapeShift’s customers to transact in digital currencies without even visiting a website.
ShapeShift AG, a Swiss digital currency exchange firm disclosed that it has acquired U.S. based KeepKey Holder LLC, a maker of digital wallets, in an all-bitcoin deal. However, it did not disclose the financial terms of the deal.
With bitcoin and other crypto-currencies gained traction, fintech companies such as KeepKey, which makes digital wallets, are emerging to serve a growing need to protect digital assets from online theft.
During an interview ShapeShift’s chief executive officer Erik Voorhees disclosed, the acquisition will allow the company to provide its users a “cohesive experience” in which they can exchange digital assets and store them at the same time.
KeepKey integrated ShapeShift’s application more than a year ago.
“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, said Voorhees.
The term “Cold storage” refers to keeping digital assets completely offline thus minimizing the potential for hacking.
By combining KeepKey with ShapeShift exchange, users can significant reduce their exposure risk to cyber attacks, said Voorhees.
“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 noncustodial exchange occurs directly from the hardware,” said Voorhees.
This naturally means that users can take their coins on hardware devices, do transactions with them on demand within the wallet, without even visiting a website.
Already ShapeShift’s volume has risen by 1,500% over its previous year, said Voorhees. He estimated that the company’s last month volume hovered around $280 million.
“This is in line with the sharp growth in the digital currency space,” said Voorhees.
On Tuesday, Bitcoin hit a record of $4,400 on the BitStamp platform. It last traded at $4,314.
As of Wednesday, the total market capitalization of the digital currency space was $141 billion.
Based out of Zug, Switzerland, ShapeShift was launched in 2014. This year it raised $10.6 million in a Series A funding that was led by Earlybird Venture Capital, a Berlin-based company, said Voorhees.