An announcement made on August 8 states that USDC issuer Circle has launched a beta version of a multiparty computation (MPC) wallet service.
This service allows creators of Web3 games, e-commerce platforms, and blockchain applications to customize wallets for their users. Initially, it will be accessible on Ethereum, Polygon, and Avalanche.
MPC wallets divide a user’s private key into shards distributed across a decentralized network. This technology has gained popularity among Web3 developers due to its API accessibility, providing a “Web2 feel.”
Developers using the new service can choose different security and control settings. They can host their own MPC nodes or connect to Circle’s nodes.
The wallet can be noncustodial, requiring users to sign transactions, or users and developers can share transaction signing responsibilities.Jeremy Allaire, Circle’s co-founder and CEO, views this service as pivotal for boosting USDC adoption and open blockchain-based payments.
The widely used Multichain MPC bridge suffered a compromise on July 7, leading to investors losing over $100 million. Circle develops its MPC service in-house, avoiding reliance on third-party vendors and mitigating associated risks.
Circle notes a growing demand for euro-backed stablecoins and suggests a yuan stablecoin could be more appealing than one the Chinese central bank issued.
