Cryptocurrency exchange Gemini has purchased crypto custody firm Shard X in a bid to strengthen its position in the market.
Gemini acquires Shard X
US-based crypto exchange Gemini has completed the acquisition of a custody tech developer, Shard X, for an undisclosed fee. The acquisition is expected to expand Gemini’s market presence in the cryptocurrency custody space.
Shard X claims to be the first crypto firm to offer multi-party computation (MPC) on hardware security modules (HSMs). Although Gemini did not disclose the terms of the deal, Shard X would become part of the company’s UK affiliate. Shard X will work with the Gemini security department. They are expected to work on adding role-based governance protocols, biometric access controls and physical security to the crypto exchange and its products.
Shard X is also expected to work on expanding Gemini’s presence in the decentralised finance space. Gemini Chief Operating Officer Noah Perlman said adding Shard X’s MPC technology into Gemini’s custody would allow them to meet the demand for fast withdrawals, interact with DeFi staking and transfer digital assets faster and more efficiently. “MPC technology provides a safe and uniform approach for achieving this speed across multiple cryptocurrencies,” he added.
M&As are becoming popular in the crypto space
Mergers and acquisitions are becoming popular in the cryptocurrency space. The market has seen numerous M&As over the past few months. Last month, Galaxy Digital acquired BitGo in a deal worth $1.2 billion. Coinbase is also reportedly in talks to acquire Osprey Funds.
The M&As make it easier for the big companies to expand their services.