MPC Wallets: Everything You Need to Know About How to Pick the Right MPC Wallet Solution

July 12, 2023

Multi-party computation (MPC) is a cryptographic security technique enabling multiple parties to perform computational tasks without revealing any personally-identifiable information or associated secret information held by each party. It's the next logical evolution of private key security.

MPC wallets leverage this critical cryptographic measure that offers an adequate solution to the constant security and privacy threats intrinsic to large distributed networks holding big amounts of data – especially within the context of distributed ledger or blockchain technology, where development teams often rely on multisig wallets to conduct their on-chain business with.

This article will give you a quick rundown on everything you need to know about MPC wallets, such as their features, functions, benefits, and drawbacks, as well as the leading smart contract wallet solutions out in the market today. We'll also show you what features you need to look at to choose the best MPC wallet for your purpose.

How Does an MPC Wallet Work?

Multisig wallets and MPC wallets are among the most common technologies for securing digital assets, with multi-sig and MPC technologies among the predominant ways to store private keys.

However, as we will see, MPC wallets are superseding traditional multisig wallets as per the requirements of the rapidly-evolving digital asset space as institutional investors break into it in drove.

MPC technology eliminates the concept of a single point of failure as multi-sig wallet users expose themselves to, adding another layer of security and privacy that new requirements dictate – not to mention true, structural anonymity that protects secret data.

MPC wallets, in a nutshell, use multi-party computation technology to securely manage digital assets on-chain. Unlike traditional wallets, MPC wallets employ advanced cryptographic techniques to ensure that the user's private key is never stored nor viewable on any one location.

The idea of a single private key is abolished, where, in MPC technology, it is never gathered, such that there is no single point of compromise possible for the private key. The private key is never collected on a single device at any point in time. In doing so, it eliminates the persistent security threats from external and internal threat actors, particularly for organizations that manage and transact with digital assets on non-custodial wallets.

Unlike multisig wallets, MPC wallets are supported on a larger number of EVM-enabled blockchains, offering institutions infinitely greater flexibility to manage digital assets on different chains – and interact with them securely and privately. Multisig wallets, on the other hand, lack the operational flexibility that is a prerequisite for institutional and organizational growth.

What Are the Benefits?

The case for using MPC wallets is strong: in particular, the lack of need to trust third parties, enhanced security, no single point of failure, and improved data privacy. Here are the most salient benefits of using MPC wallets:

  • Trustless. MPC wallet solutions can share data in a trustless, decentralized manner without any intermediaries.
  • Improved privacy. MPC wallets enable data encryption at rest and whenever in transmission, so private information is abstracted and remains obfuscated. MPC technology enables privacy-focused transactions.
  • No single point of failure. MPC wallets do not store private keys in one single place.
  • Less likelihood of hacking. Hackers need to work triply hard to compromise multiple authorized parties scattered across locations and different systems.
  • MPC wallets rely less on cold storage. Integrated MPC wallets will enable users to not overly rely on cold storage devices that may be susceptible to data breaches.
  • Cross-chain interoperability. The ERC-4337 standard facilitates cross-chain interoperability by enabling users to control and manage digital assets across different blockchain ecosystems supporting the Ethereum Virtual Machine (EVM).

What Are the Drawbacks?

MPC wallets do have their drawbacks, which users ought to be aware of when using the technology as follows:

  • Potentially slower transaction times. Multiple signatures are required for MPC wallets and take time and effort to collate for transactions, which may cause slower transaction times. For instance, different signatories may be in different time zones, which will take some coordination and effort.
  • Steeper knowledge gap to bridge. MPC wallets generally require a higher degree of technical expertise to set up and maintain properly. This steeper knowledge gap may be a barrier for adoption for interested parties that may lack the technical know-how or prefer an existing solution.
  • Limited adoption/relatively few MPC wallet providers. MPC wallets are in their earliest stages, meaning the technology hasn't yet been widely adopted by many wallet providers. The lack of availability may make it hard for users to find adequate support and troubleshooting resources unless they have high technical levels of expertise in cryptography.

Institutional and Organizational Use Cases

The advent of MPC wallets comes at the perfect time, offering significantly improved privacy, security, and flexibility with web3 wallet UX. MPC wallets, in particular, are the perfect wallet for institutions, teams, and organizations because of their intrinsic risk mitigation, efficient asset management, and advanced security controls.

Here are the primary use cases for MPC wallets:

  • Team/shared wallets for institutions, decentralized autonomous organizations (DAOs), and organizations. MPC wallets enable joint management and collaboration under one wallet so that multiple authorized parties can manage their digital assets securely and efficiently without having to reveal their private keys to each other.
  • Facilitate secure escrow services. With private key shares, MPC wallets can function as a secure escrow service to ensure that transactions can only be undertaken when all corresponding criteria are met.
  • Multi-user wallets for consortia or clubs. MPC wallets allow a pool of investors or stakeholders to manage their investments and decision-making capabilities jointly for any transaction that requires a consensus.
  • Efficient key management for centralized exchanges and custodial services. Crypto exchanges and custodial services can leverage MPC technology to harden their security, with MPC wallets enabling secure key management and distribution to avoid a single point of compromise that would lead to security incidents.
  • Decentralized finance (DeFi). DeFi protocols that enable a variety of transactions, such as private lending and borrowing of digital assets, can do so in a secure and efficient way.

MPC Wallets: Competitive Landscape (Krayon vs. Fireblocks vs. Copper vs. Gnosis Safe)


Krayon is a Singapore-based web3 company focused on providing secure custody and MPC-based digital wallets, founded in 2022 by former executives in the cybersecurity and fintech sectors.

Krayon offers institutional-grade crypto custody with its MPC wallet solutions. Besides enterprise-level security protocols to defend users from hacks, exploits, or phishing attempts, Krayon comes without the high-cost enterprise pricing tiers.

Krayon has tailored our services specifically for smaller to medium-sized teams, companies, and institutions. In particular. Krayon will be a great fit for:

  • token issuers,
  • fiat offramps,
  • DeFi platforms,
  • gaming companies,
  • exchanges,
  • treasury teams,
  • individual customers,

and many others who wish to manage their own digital assets with cutting-edge MPC technology.

Our platform offers superior security, scalability, and interoperability compared to "traditional" options like Gnosis Safe but at a significantly more affordable price point than Fireblocks or Copper.

Krayon currently supports Bitcoin, Ethereum, and Polygon (with support for other cryptos like Tron in the works).


Fireblocks is an institutional digital asset custodian offering MPC wallets. The platform's use of MPC technology and hardware security enables optimal security, reduces transaction costs, and meets service-level agreements.

Fireblocks has notable clients such as Standard Chartered and Northern Trust among its clientele, which sums up its reputation as a high-cost solution suited for big corporations and institutions rather than small to medium-sized organizations, businesses, or investors with less than $100 million in digital assets.


Copper is another custodian offering an MPC wallet solution, which, like Fireblocks, caters to larger institutional clients.

The custodial platform features a proprietary system using innovative key-sharding techniques to verify and authorize transactions, with an underlying MPC technology base to ensure optimal levels of security and key management encryption.

Copper enables trading firms to retain independent custody of their digital assets, allowing institutional investors and hedge funds to actively trade cryptos on centralized exchanges.

However, Copper and its MPC wallet development project is largely seen as one of the more expensive custody and MPC wallet providers out there, with fee schedules more appropriate for large-scale institutions.

Gnosis Safe

Prior to the advent of MPC technology, DAOs, organizations, and companies largely relied on multisig wallet provider Gnosis Safe.

However, as we have mentioned earlier, multisig wallets have drawbacks that make them too complex for many users.

For instance, Gnosis Safe lacks the same level of interoperability and scalability that MPC wallets possess due to the simple fact that not all blockchain protocols support multisig wallets.

Every blockchain protocol has its own distinct private key implementation for multisig, making it hard for Gnosis to provide ongoing, stable support for new blockchains.

Moreover, unlike MPC wallets, multisig wallets like Gnosis aren't typically protocol-agnostic, whereas MPC wallets are available and work with any EVM-supported chain and dapps.

Lastly, the main knock on multisig wallets like Gnosis is that it requires separate keys for multiple parties to sign transactions with. What this means is that third parties can see how your policies are configured, enabling them to trace who your co-signers or authorized parties are.

Whereas on MPC, only the final signature is recorded on-chain, meaning the entities involved, as well as your authorization policy, remains private.

Which MPC Wallet Is The Best?

Ultimately, there is not a single MPC wallet that is "the best" for every user. It all depends on the requirements of the user.

Here are some of the key areas you need to review before choosing an MPC wallet solution:

  • Interoperability/ decentralized app (dapp) connectivity
  • Excellent UX and UI design
  • Wallet security protocols
  • Governance rules
  • Reliable customer support
  • Native features

That said, if you're an individual investor, a small team, or a small to medium-sized organization looking to use MPC custodial solutions for its added utility, security, and efficiency, Krayon is your best option, being the only MPC wallet solution focusing on small to mid-market institutions, corporates, and retail clients in the nascent space.

Plus, with Krayon, you get the same institutional-grade security and custody like Fireblocks and Copper, without the institutional price tags.

Krayon's built-in ability to set custom governance rules makes it a viable option for any business while allowing room for smaller entities to scale accordingly.

However, if you are an institutional investor holding over $1 billion in assets under management, high-cost enterprise grade solutions like Fireblocks and Copper might be more appropriate for you.

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