Zenrock: Revolutionizing Crypto Custody with Enhanced Security Measures

Zenrock: A New Era in Crypto Custody

Zenrock, an innovative crypto custody platform emerging from the remnants of Qredo, is set to address longstanding concerns regarding the security of decentralized finance (DeFi). The platform’s mission is to attract users away from centralized offerings by providing a more secure and user-friendly method for managing their digital assets.

According to Chairman Dan Tapiero, many investors gravitate towards centralized exchanges (CEX) and exchange-traded funds (ETFs) due to apprehensions about engaging with DeFi. Even seasoned participants in the crypto space, often referred to as “degens,” express unease when it comes to utilizing DeFi solutions.

The primary issue with current custody models lies in the centralized nature of custodians holding assets, creating a potential single point of failure. Zenrock aims to overcome this vulnerability by utilizing a decentralized multiparty computation (MPC) wallet for private key management. MPC wallets distribute and fragment private keys among multiple parties, effectively mitigating the risks associated with a centralized point of failure.

These concerns are not unfounded. Recent findings from blockchain security firm Halborn highlight the persistent threat of DeFi hacks, underscoring the need for enhanced security measures in the industry. The report indicates that off-chain hacks, particularly those involving the theft of private keys, have surged, accounting for nearly 60% of the total stolen assets in 2023. Additionally, cross-chain bridges remain a significant target for malicious actors.

In an interview, Zenrock’s CEO Randy Little emphasized the company’s commitment to being a robust security solution in the DeFi and on-chain landscapes, particularly for cross-chain transactions. “We can be the security solution in the DeFi and on-chain worlds for cross-chain transactions,” he stated.

Zenrock has developed a hybrid security model that integrates its protocol’s security with that of EigenLayer, a framework that allows for the “renting” of economic security from Ethereum. This innovative approach not only strengthens the platform but also provides a practical application for restaked ether.

Zenrock is poised to offer a comprehensive transaction model, with plans to make its technology accessible to developers, institutions, and individual investors. Currently in the testnet phase, the platform is gearing up for a launch later this year.

In February, Tapiero’s 10T Holdings (10T) and 1RoundTable Partners (1RT) completed the acquisition of significant assets from Qredo following a bridge financing round. Notably, Little is a partner in both firms. “The series of transactions that we executed to restructure Qredo into Zenrock is unprecedented in the crypto space,” Tapiero remarked. “It encompassed a blend of private lending, debt financing, bankruptcy workouts, restructuring efforts, operational enhancements, and product development, culminating in an impending mainnet launch.”

Adding to this, Tapiero noted, “We are pioneers in applying traditional private equity practices to the evolving digital asset landscape, and I believe that many traditional finance (TradFi) private equity firms will follow suit in the coming years.”

On August 19, Zenrock announced the launch of a decentralized wrapped Bitcoin token, named zenBTC, further diversifying its offerings. The crypto custody firm is also bolstered by the backing of the Spartan Group and Maven 11, positioning itself as a significant player in the digital asset sphere.