MPCH Labs, which is developing a cryptographic technique to split and store private keys for multiple users, raised a $40M Series A led by Liberty City Ventures
Brandy Betz / CoinDesk :
Context & Ripple Effects
MPCH Labs' $40M Series A lands in the middle of a sustained funding run on the key-management stack itself. Within months of this round, Magic raised $52M led by PayPal Ventures for wallet-creation SDKs, Unchained Capital pulled in a $60M Series B for Bitcoin cold-storage services, and OneKey raised ~$20M from Dragonfly and Ribbit Capital for certified-chip hardware wallets — investors are backing every layer of how private keys get held.
What distinguishes MPCH is the approach: rather than securing a key in one place — a chip, a vault, a custodian — it is building cryptographic splitting so a key is stored across multiple users by design. That puts it in structural competition with the single-point-of-trust models the rest of the coverage is funding.
First-order effects
- Liberty City Ventures takes a lead position in a company whose product removes the need to trust any single key holder — directly relevant to the custodians and hardware vendors that currently anchor the market.
- Wallet builders choosing between architectures now have a well-funded MPC option alongside the SDK route (Magic) and the low-level infrastructure route (Turnkey's $30M Series B).
Second-order effects
- Hardware wallet makers like OneKey, whose pitch rests on a certified secure chip, face a rival trust model where security comes from key distribution rather than device tamper-resistance — forcing them to argue hardware and software assumptions, not just features.
- Cold-storage service providers such as Unchained Capital see their 'trusted third party holds the key' economics challenged by schemes where no party ever holds the whole key.
Third-order effects
- If the funding cadence across these layers continues, key custody consolidates into a stack where cryptographic splitting becomes the default for shared and institutional wallets, shifting the security debate from who you trust to how the math distributes trust.
The trend: Venture capital is systematically funding every layer of crypto key management — chips, SDKs, cold storage, and now key-splitting cryptography — as wallet infrastructure matures into its own asset class.