Crypto wallet startup Dfns secured $13.5 million in seed funding to improve crypto wallet security. Dfns plans to expand its offerings that secure the digital assets of fintech companies and banks by safeguarding the passwords to their crypto wallets.
White Star Capital led the funding while other investors including Coinbase, Dutch bank ABN AMRO, Susquehanna, and Hashed, also participated in the round.
Dfns is focused on sharding crypto wallet passwords known as private keys and distributing pieces across a peer-to-peer network. As a result, passwords will no longer be stored in a single location, preventing crypto wallets from being hacked.
With the splitting of the wallet’s private key, companies will get utmost security. This way, the password to the crypto wallet doesn’t exist anymore in its full format.
Also, Paris based Dfns aims to use the funding to deploy its keyless wallets across all decentralized finance (DeFi) applications. The startup will also expand its team and help financial institutions transition to digital assets.
Reportedly, the main hurdle for people to venture into crypto is its perceived lack of security. Just last month, the Ronin network suffered an exploit of over $600 million (173,600 ETH) and 25.5 million USDC stablecoin ($25.5 million). The attacker carried out this heist by targeting hacked private keys to forge false withdrawals.
Dfns’ step to split private keys have the potential to protect the companies from such attacks. For now, the cloud-based startup is designed to offer digital asset security and provide safe, cloud-native custody as a service that secures advanced future-ready technology.
