KeepKey: A History of Hardware Wallet Innovation

The Origins of KeepKey

Founded in 2014, KeepKey emerged in a turbulent time for cryptocurrency. Following the infamous Mt. Gox breach, which was the largest exchange hack at the time and lost half a billion dollars of customers funds.

Driven by this urgency, founders Darin Stanchfield and Ken Hodler created KeepKey with a singular mission:

to deliver secure, user-friendly crypto storage accessible to all.

From day one, KeepKey set a standard with its large-screen design, enabling users to confirm transactions directly on the device — a feature that offered both enhanced security and peace of mind. With private keys stored offline, KeepKey rapidly established itself as a trusted, resilient solution for safeguarding digital assets.

ShapeShift Acquisition

A Strategic Shift: ShapeShift Acquisition and Vision Expansion
In 2017, KeepKey was acquired by ShapeShift under the leadership of Erik Voorhees.

ShapeShift had transformed the crypto landscape with its revolutionary non-custodial swapping model,

allowing users to trade assets without KYC or account requirements.

The synergy was clear: integrating ShapeShift’s vision into KeepKey’s hardware would create an unprecedented solution that combined security and convenience. This partnership made KeepKey the first hardware wallet to enable direct, on-device asset swaps, letting users trade securely from their wallet.

A Period of Challenge: Regulation Strikes

However, ShapeShift’s success drew regulatory attention, which ultimately forced it to adopt KYC measures — shifting it away from its foundational mission. This regulatory burden drove ShapeShift’s business into a challenging period, revealing the stark limitations imposed by centralized oversight in the world of decentralized finance.

The Thorchain Mission:

KeepKey’s Evolution Toward Decentralized Swaps
During these shifts, both Erik Voorhees and KeepKey’s technical lead, Matt Highlander, became obsessed by Thorchain, a decentralized protocol designed for cross-chain, non-custodial swaps. With a commitment to decentralization, KeepKey evolved to align with Thorchain, becoming the first hardware wallet to integrate RUNE, Thorchain’s native asset. This integration positioned KeepKey as the premier hardware wallet for users invested in decentralized asset management and trading.

Milestones in Thorchain Integration:

• 2018: Thorchain development initiates, marking the birth of decentralized cross-chain swaps.
• December 2020: KeepKey integrates RUNE, providing secure storage and transaction capabilities.
• April 2021: ChaosNet launch facilitates live decentralized swapping through Thorchain.
• April 2022: Thorchain mainnet goes live, unlocking robust decentralized trading functionalities.

Security and Innovation:

KeepKey’s team developed firmware-integrated swaps, becoming the first hardware wallet to embed Thorchain swaps directly within its core technology. This advancement solidified KeepKey’s position as a leader in hardware wallet security, enabling seamless, secure decentralized trading on the device itself.

ShapeShift Becomes the First DeFi Platform to Offer Cross-Chain Bitcoin Swaps via a Hardware Wallet…
PRNewswire/ -- ShapeShift, an international, non-custodial cryptocurrency leader, has enabled cross-chain swaps via… www.prnewswire.com

The ShapeShift DAO Transformation:

A New Era of Independence
In 2021, ShapeShift transformed into a DAO, freeing KeepKey from a centralized structure.

With Matt Highlander and Nick Marrow, former ShapeShift engineers, at the helm, KeepKey embraced its newfound autonomy.

Now, as an independent entity, KeepKey accelerated its mission to enhance decentralized accessibility,

Under the leadership of Matt Highlander and Nick Marrow, former ShapeShift engineers, KeepKey has embraced its independence, driving a mission of decentralized accessibility with key innovations:

• RESTful Wallet Protocol: Multi-chain dApp support beyond ShapeShift, enabling broad compatibility for users connecting to multiple assets without app switching, a novel feature in the space.
• KeepKey Desktop Application: A streamlined, user-friendly interface enhancing UX and supporting multi-chain engagement.
• Browser Extension: Seamless integration with MetaMask-compatible dApps using EIP-6968, expanding KeepKey’s reach across Web3.

Defending User Sovereignty

KeepKey’s mission is ongoing, with a resolute focus on protecting users’ assets through self-custody solutions. The team is unwavering in their fight against hackers, malware, and malicious actors, advancing a future where users stay secure and fully in control.

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