Edgen Crypto·Sep 29 2025, 07:42Digital asset custody provider Cobo has integrated its Multi-Party Computation (MPC) wallet infrastructure with crypto-fiat platform Transak, enhancing secure global operations.
Cobo, a provider of digital asset custody and wallet solutions, has announced the integration of its Multi-Party Computation (MPC) wallet infrastructure by Transak, a global crypto-fiat service platform. This strategic adoption is set to bolster Transak's OTC (Over-The-Counter) services, enterprise fund transfers, and merchant acquiring businesses.
Transak, which boasts operations in over 75 countries and is backed by investors including IDG Capital and Tether, currently offers robust crypto-fiat on/off-ramp services. The integration of Cobo's MPC technology is specifically designed to facilitate more efficient and secure fund flows, particularly for its expansion in core markets such as Europe and the United States. This move addresses the escalating institutional demand for secure stablecoin transactions.
Cobo's MPC technology leverages advanced cryptography, including a Threshold Signature Scheme (TSS), which generates key shares independently across multiple devices and locations. This design ensures that a full private key never exists in a single location, thereby eliminating single points of failure and safeguarding assets from external attacks and insider threats. Furthermore, Cobo incorporates Trusted Execution Environments (TEEs), such as Intel SGX, to encrypt key shares at the hardware level, providing an additional layer of security even if operating systems are compromised. Cobo holds ISO 27001 and SOC 2 (Type 1 and Type 2) certifications, underscoring its commitment to rigorous security standards.
Transak, described as a leading Web3 onboarding infrastructure provider, offers API-driven solutions enabling Web3 platforms to onboard users from over 150 countries. Its services encompass KYC (Know Your Customer), risk monitoring, compliance, diverse payment methods, and customer support. The platform facilitates crypto purchases through various localized payment methods, including Google Pay and Apple Pay. In recent months, Transak has also integrated with the Zengo wallet (February 22, 2024) to streamline secure crypto acquisitions and with M2 to provide fiat-to-crypto on-ramp services, supporting over 30 tokens and cryptocurrencies.
Transak's strategic financial maneuvers include a $16 million funding round, led by Tether and IDG Capital, aimed at expanding its stablecoin payments infrastructure and scaling global operations. This funding underscores the market's confidence in Transak's growth trajectory and the increasing importance of stablecoins in the digital economy. The company reports that nearly 30% of its total processed transaction volume, exceeding $2 billion to date, is attributed to stablecoin flows.
Transak's platform integrates regulated fiat on- and off-ramps, virtual bank accounts, real-time liquidity routing, and comprehensive compliance tools. These offerings enable applications—including wallets, exchanges, fintech platforms, and DeFi projects—to facilitate fiat-to-stablecoin conversions without the need for extensive in-house operational infrastructure development. Cobo's MPC wallets further complement this by supporting flexible M-of-N configurations and offering Wallet-as-a-Service (WaaS) APIs, allowing for customized signing requirements tailored to specific business needs.
The adoption of Cobo's MPC infrastructure by Transak represents a significant enhancement to its existing framework, which already manages complex regulatory and security requirements for over 450 integrated applications globally. This strategic decision aligns with a broader industry trend toward robust, compliant, and highly secure infrastructure as a prerequisite for mainstream and institutional adoption of digital assets. The move parallels the focus on secure, efficient tokenized asset movements seen in other areas of the market, such as Ripple's RLUSD stablecoin serving as an off-ramp for institutional real-world assets.
This integration has several immediate and long-term market implications. In the short term, it is expected to significantly increase the operational efficiency and security of Transak's global operations. This enhancement could attract a greater number of institutional clients seeking reliable and secure pathways for managing digital assets and stablecoins, thereby solidifying Transak's position as a critical infrastructure provider in the Web3 ecosystem.
Longer term, the collaboration between Cobo and Transak contributes to the broader maturation and institutionalization of the crypto market. By providing secure and efficient crypto-fiat rails, particularly for stablecoin settlements and enterprise use cases, it lowers barriers to entry for traditional financial entities. This strengthens the overall digital asset infrastructure, fostering greater trust and facilitating larger-scale capital flows into the space. The emphasis on advanced security features like MPC technology directly addresses key concerns around asset safety and operational integrity, which are paramount for institutional adoption. This development supports the expansion of enterprise blockchain solutions and tokenized finance, enabling more seamless interaction between fiat and digital asset economies.
Yeshu Agarwal, CTO of Transak, emphasized the dual importance of accessibility and security in the digital asset landscape. He stated, > "At Transak, we believe everyone should be able to access cryptocurrencies. While ease of access is crucial, security is undeniably important in an ownership-based financial landscape. Our partnership with Zengo is a great inflection point of secure and easy crypto access for the masses." This sentiment extends to the Cobo integration, reinforcing Transak's commitment to providing both ease of use and institutional-grade security.
The integration of Cobo's MPC technology into Transak's platform reflects a growing imperative within the digital asset industry to prioritize institutional-grade security and compliance. As the crypto market evolves, the ability to manage high-value transactions securely and efficiently becomes paramount for attracting and retaining traditional finance participants. Transak's extensive global reach, coupled with its regulatory approvals in jurisdictions including the United States, United Kingdom, European Union, Canada, Australia, and India, positions it strategically to capitalize on the increasing demand for secure and compliant crypto-fiat gateways. The continuous expansion of stablecoin payment infrastructure, evidenced by Transak's substantial funding and transaction volumes, is a key catalyst for the mainstream adoption of digital assets in global commerce and institutional settlements. This collaboration reinforces the vital role that robust infrastructure providers like Cobo and Transak play in bridging the gap between traditional financial systems and the burgeoning Web3 economy.
