The popular instant digital asset exchange ShapeShift has reportedly acquired an Israeli startup called Portis. The latter has developed a non-custodial blockchain wallet. ShapeShift had already integrated the solution into its exchange but has now moved to acquire the company altogether.
According to a popular Israel news outlet Globes, the well-known instant digital asset exchange ShapeShift has acquired Portis – the developers of a non-custodial blockchain wallet.
As part of the deal, Erik Voorhees’ US-based exchange completed the acquisition of Portis that was co-founded by Tom Teman and Scott Gerlnick. The Israeli startup only had four employees who will now move to work in a new Tel Aviv office, managed by ShapeShift’s founder.
Interestingly enough, Portis had already been integrated into ShapeShift back in November 2019. Speaking on the matter back then was Voorhees himself, who said:
With Portis, we can offer ShaperShift without hardware for the first time, giving the best way to easily and quickly hold, trade, and track your crypto, all without giving up your control to a third party.
It appears that the instant digital asset exchange is on a mission to get people away from custodial exchanges.
Back in 2019, the exchange also launched its native cryptocurrency called FOX. Similar to other exchange tokens, it also provides reduced trading fees and other perks. Upon launching it, Voorhees explained that custodial exchanges had been an issue for the space since 2011 when he first joined it, and they continue to pose challenges.
He explained that to solve this problem, his team had to “provide all that stuff in one place.”
Indeed, most complying cryptocurrency exchanges are custodial. This means that users don’t have control over their private keys, hence the saying “not your keys, not your Bitcoin.” It’s essential to store your digital currencies outside of exchanges and only leave there whatever is needed for trading purposes. This way, users won’t have to worry about the exchange being hacked, which has been seen on countless occasions.