Fireblocks and Xinhuo Technology's self-custody platform partner to integrate OpenLoop settlement network
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Fireblocks and Xinhuo Technology's self-custody platform partner to integrate OpenLoop settlement network
MPC custodial platform, a subsidiary of Soteria Technology Holdings Limited (1611.HK), announced a partnership with cryptocurrency trading platform Huobi to collaborate on the OpenLoop clearing and settlement network, aimed at safeguarding user assets.
Navigating Web3 tides with focused insightsOn April 14, according to official Twitter accounts of Xinhuo Technology and Huobi Global, MPC self-custody platform under Xinhuo Technology Holdings Limited (1611.HK) announced a partnership with cryptocurrency exchange Huobi to implement the OpenLoop clearing and settlement network, aiming to safeguard user assets.
This collaboration will further accelerate the development of digital asset security. In the future, Huobi will leverage Xinhuo Technology’s mature Multi-Party Computation (MPC) technology to achieve secure and stable fund custody, helping users separate fund custody from trading activities. This means Huobi users can complete transactions without moving funds out of their self-custody accounts, enabling full control over their assets.
Xinhuo Technology’s self-custody platform utilizes MPC-CMP co-managed private key shards and collaborative signing to eliminate single-point risks associated with private keys, separating transaction execution from asset custody. This allows users to fully control and recover private keys with a Web2-like experience, eliminating concerns about private key loss, while ensuring foundational security against hacking, theft, and transfers to blacklisted addresses. Meanwhile, users’ MPC wallet assets are mapped 1:1 onto Huobi, enhancing asset security and significantly reducing on-chain gas fees.
Andrew, head of Xinhuo Technology’s MPC self-custody platform, said: "By separating trading from fund custody, users of Xinhuo’s MPC self-custody platform no longer need to worry about fund security. They can enjoy Huobi’s convenient operational experience while achieving high efficiency and flexibility in asset management. This cooperation will also positively contribute to Huobi’s business growth."
Huobi stated: "Mapping funds from Xinhuo Technology’s MPC self-custody platform onto centralized exchanges like Huobi not only avoids risks associated with on-chain transfers but also improves capital utilization efficiency and reduces costs and barriers for users accessing multiple exchanges. For Huobi, this model will enhance exchange transparency, reduce counterparty risk, attract more trading teams, increase trading volume, and boost overall trading activity."
According to statistics from SlowMist Hacked, SlowMist’s blockchain hack incident database, the crypto market experienced 295 security incidents in 2022, resulting in cumulative losses of up to $3.728 billion. Poor wallet management has become a major contributing factor to these security breaches. Additionally, the collapses of FTX and several other trading platforms and CeFi platforms have shaken confidence in the cryptocurrency market, particularly impacting centralized exchanges. As key players in the industry, Huobi and Xinhuo Technology aim to ensure independent fund security through technological innovation, helping rebuild trust between centralized exchanges and users, thereby revitalizing liquidity in the crypto market.
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