ShapeShift Acquisition: A Strategic Shift and Vision Expansion

The ShapeShift Acquisition (2017)

In 2017, KeepKey was acquired by ShapeShift , led by Erik Voorhees. ShapeShift revolutionized the crypto landscape with its groundbreaking non-custodial swapping model, enabling users to trade assets without KYC or account requirements.

The synergy between ShapeShift and KeepKey was clear: integrating ShapeShift’s vision into KeepKey’s hardware wallet would create an innovative solution that combined security and convenience. This partnership made KeepKey the first hardware wallet to enable direct, on-device asset swaps, allowing users to trade securely from their wallet.

A Period of Challenge: Regulation Strikes

ShapeShift’s success eventually attracted regulatory scrutiny, forcing the adoption of KYC measures. This shift marked a significant departure from its foundational mission and placed the company under substantial pressure, highlighting the limitations imposed by centralized oversight on decentralized finance.

The Thorchain Mission: Decentralized Swaps and KeepKey’s Evolution

Amid these challenges, KeepKey’s leadership, including Erik Voorhees and technical lead Matt Highlander, turned to Thorchain 

— a decentralized protocol for cross-chain, non-custodial swaps.

Aligning with Thorchain’s mission, KeepKey became the first hardware wallet to integrate RUNE, Thorchain’s native asset. This strategic alignment positioned KeepKey as a leader in decentralized asset management and trading.

Milestones in Thorchain Integration:

• 2018: Thorchain development begins, pioneering decentralized cross-chain swaps.
• December 2020: KeepKey integrates RUNE for secure storage and transactions.
• April 2021: ChaosNet launch enables live decentralized swaps through Thorchain.
• April 2022: Thorchain mainnet goes live, unlocking robust decentralized trading capabilities.

Security and Innovation:

KeepKey’s team developed firmware-integrated swaps, becoming the first hardware wallet to embed Thorchain swaps directly within its core technology. This innovation solidified KeepKey’s leadership in hardware wallet security, enabling seamless and secure decentralized trading.

The ShapeShift DAO Transformation: A New Era of Independence

In 2021, ShapeShift transitioned into a DAO, freeing KeepKey from centralized constraints. Under the leadership of former ShapeShift engineers Matt Highlander and Nickolas (KeepKeys lead firmware developer), KeepKey embraced its independence to accelerate innovation and decentralization.

Key Innovations:

• RESTful Wallet Protocol: Multi-chain dApp support beyond ShapeShift, allowing users to connect to various assets without app switching.
• KeepKey Desktop Application: A user-friendly interface for seamless multi-chain engagement.
• Browser Extension: Integration with MetaMask-compatible dApps using EIP-6968, enhancing Web3 compatibility.

Defending User Sovereignty

KeepKey remains committed to empowering users through secure self-custody solutions. By advancing protections against hackers, malware, and malicious actors, KeepKey continues to safeguard assets and uphold user sovereignty in an ever-evolving digital landscape.