USDC Issuer Circle Introduces Beta Version of MPC Wallet for Ethereum, Polygon, Avalanche

Circle, the issuer of USD Coin (USDC), has launched a beta version of a multi-party computation wallet (MPC) for Ethereum, Avalanche, and Polygon.

Aug 8, 2023 - 17:50
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USDC Issuer Circle Introduces Beta Version of MPC Wallet for Ethereum, Polygon, Avalanche
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In a significant move towards enhancing the security and customization of digital wallets, Circle, the issuer of USD Coin (USDC), has announced the release of a beta version of a multi-party computation wallet (MPC). This new service is set to revolutionize the way developers interact with blockchain applications, including DeFi apps, Web3 video games, and e-commerce services.

MPC Wallets: A New Era of Security

MPC wallets are known for their unique security feature that splits the user's private key into multiple shards, distributing them through a decentralized network. This new wallet technology has become a preferred choice for many Web3 developers. The accessibility via an application programming interface (API) gives them a more familiar "Web2 feel."

Circle's new service offers developers the flexibility to choose the best wallet security and control configurations. Options include hosting their own MPC nodes to reduce reliance on Circle or connecting to Circle's nodes for simplicity. Developers can also decide whether to share transaction signing responsibilities with users or require users to sign every transaction.

Circle's co-founder and CEO, Jeremy Allaire, emphasized that the new service is vital for promoting the use of USDC and easing common pain points for developers. This platform marks the first step for Circle's Web3 services, aiming to advance the global utility and adoption of digital assets like USDC.

Controversy and Security Measures

MPC wallets have recently faced controversy when the widely used Multichain MPC bridge was hacked, causing a loss of over $100 million. This incident raised worries about the security of MPC shards.

Circle's senior director of product management, Gagan Mac, clarified that the new service is built and maintained in-house, without relying on external vendors or third-party cloud storage systems. Developers and enterprises may also choose to host an MPC node if they wish, a feature not allowed by Multichain.

Circle's launch of the MPC wallet beta for Ethereum, Avalanche, and Polygon is a significant step forward in the field of digital wallet technology. By offering enhanced security through decentralized key management and providing customization options for developers, Circle is paving the way for a more secure and user-friendly experience in the world of blockchain applications. The introduction of this service not only reflects the growing demand for innovative wallet solutions but also reinforces Circle's commitment to advancing the adoption of digital assets like USDC.