MPCH Labs raised $40 million in a Series A round led by venture capital firm Liberty City Ventures. The funding comes as MPCH prepares to launch its first product, Fraction, a customizable operating platform that allows multiple users to securely manage digital assets, wallets and workflows, according to a press release.
New York-based MPCH Labs is developing products based on Multi-Party Computation (MPC) technology, a cryptographic security technique where private keys are split and stored in a different location. MPCH used MPC technology to build its proprietary MPC6 engine, which lets multiple parties sign, authorize, approve and view actions within the same wallet. Fraction, built on the MPC6 engine, will launch in the fourth quarter of this year.
“Fraction was never about building a better MPC wallet," said MPCH co-founder Cat Le-Huy in the press release. "Fraction was about driving crypto to succeed and enabling wider-adoption outside of the crypto-native world ... By providing resilient, secure, and extensible infrastructure around multipermissioned MPC wallets, we believe that we can play a part in unleashing the full potential of crypto.”
Banks and traditional financial institutions wanting to enter the world of digital assets are concerned about security and the custody of the assets. The concerns have created a growing debate about whether hardware security, MPC or a combination of both offer the best solution for TradFi players.
Liberty City Ventures helped incubate or nurture the growth of NPCH Labs. Other investors in the funding round included QCP Capital, Mantis VC, Human Capital, Global Coin Research, LedgerPrime, Finality Capital, Oak HC FT, Polygon Studios, Quantstamp, and Animoca.