Zenrock, the newly established crypto custody platform emerging from the remnants of Qredo, is set to address prevalent security concerns in decentralized finance (DeFi) and stimulate industry growth by offering a more secure alternative to centralized solutions.
Dan Tapiero, Chairman of Zenrock, highlighted in an interview that investors often rely on centralized exchanges (CEX) and exchange-traded funds (ETFs) due to apprehensions about the DeFi space. He noted that even seasoned crypto enthusiasts exhibit caution towards DeFi.
Current custody models present a significant risk of centralization, where a single custodian holding digital assets can become a vulnerability. Zenrock proposes a solution through its decentralized multiparty computation (MPC) wallet, which distributes private keys among multiple parties, thus eliminating the single point of failure.
The concerns surrounding DeFi security are underscored by a recent Halborn report, which identifies hacks and thefts, including the pilfering of private keys, as increasing threats. The report indicates that off-chain hacks represented nearly 60% of the total stolen amount in 2023, with cross-chain bridges being a notable attack vector.
Zenrock CEO Randy Little emphasized the platform’s potential as a security solution for DeFi and cross-chain transactions, stating, “We can be the security solution in the DeFi and on-chain worlds for cross-chain transactions.”
The company’s innovative approach includes a hybrid security model that combines its own token with EigenLayer’s economic security from Ethereum. Little explained that Zenrock leverages restaked ether from EigenLayer to enhance its security framework.
Zenrock is set to release its technology to developers, institutions, and individual investors, with the platform currently in its testnet phase and a full launch planned for later this year.
In February, Tapiero’s 10T Holdings (10T) and 1RoundTable Partners (1RT) acquired significant assets of Qredo following a bridge financing round, with Little being a partner in both firms. Tapiero described the restructuring of Qredo into Zenrock as unprecedented in the crypto sector, involving a mix of private lending, debt financing, and restructuring.
Tapiero also noted that Zenrock’s approach merges traditional private equity practices with the evolving digital asset landscape, predicting that more traditional finance firms will adopt similar strategies in the future.
On August 19, Zenrock unveiled its decentralized wrapped bitcoin token, zenBTC. The firm is also supported by the Spartan Group and Maven 11.
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