0xPass raises $1.8 million to build login systems for non-custodial crypto wallets

0xPass has raised $1.8 million in a pre-seed round to build secure login systems for non-custodial wallets.

According to TechCrunch, investors in the round include AllianceDAO, Soma Capital, Alchemy Ventures, Blockchain Builders Fund, Formulate Ventures, Kommune, Hashed EM, Signum Capital/UOB, Nonce Classic, former Coinbase CTO Balaji Srinivasan and Z Fellows' Cory Levy.

0xPass uses what is known as multi-person computation to shard and distribute keys among multiple users solely across network nodes. "We just split the private key so that the shards are distributed among these nodes," cofounder Krish Chelikavada told TechCrunch, adding: "And we use secure enclaves and MPC algorithms to make sure that the entire system is non-custodial in nature.”

Regulatory concerns

The project identifies regulatory concerns at the forefront of the blockchain and crypto industry as potential challenges.

“I think our biggest unknown right now is more from a regulatory perspective because we don’t know how governments are going to look at wallet infrastructure,” Chelikavada noted. “So I’ll say, from a macro perspective, that’s the one thing that we’ll have to wait and see what happens.”

Self-hosted wallets have indeed become a spotlight for regulators, particularly in the European Union, which is largely seeking to eliminate trading via unidentified crypto wallets.