Japanese SBI Group, one of the leading global financial services providers, has teamed up with Danish cryptographic company Sepior to create a virtual asset proprietary wallet jointly. The new service, which comes amid growing regulatory scrutiny in Asia, will be integrated into the SBI digital currency exchange VCTRADE, according to a Sepior press release from Monday.
SBI chose the Danish firm’s software due to its multiparty computation (MPC) software called Threshold-Sig Wallet Security. Sepior claims that this technology guarantees a high-level degree of protection for the encryption key.
Established in 2014, Sepior uses cryptography to create security solutions that work with various devices and platforms. The company bases its model on two main parts: secret sharing and threshold. The first one splits the encryption key into several shares, which are distributed across multiple parties. The technique reduces the risk of stealing the keys when one of the parties suffers an attack or other security breaches, the Danish company claims.
Security is one of the major issues for the cryptocurrency industry in Asia after several large hacks. The $530 million attack on Coincheck in January this year has prompted the country’s Financial Services Agency to introduce new rules including banning of the hot storage.