IOTA Teams Up with Keystone for Secure, Open-Source Cold Wallet Integration

• Keystone benefits by integrating $IOTA’s key features and leveraging its Delegated Proof of Stake (DPoS) consensus, MoveVM and EVM compatibility.
• The collaboration also enables real-world applications such as cross-border trade data transfer via TWIN and identity solutions through Decentralized Identifiers (DIDs) and Verifiable Credentials (VCs).

In a major development, Keystone hardware wallet revealed that it is partnering with the $IOTA blockchain network, wherein it will leverage the latter’s decentralized acyclic graph (DAG) architecture, while further boosting transparency and security of the wallet platform.

Keystone is a major player in the crypto hardware wallet market, competing with giants like Ledger, and offers an air-gapped, fully open-source solution. It aims to offer a strong security solution addressing vulnerabilities in private key management.

Unlike Ledger, whose CEO recently admitted the potential for private key shard access under legal pressure, Keystone is designed with a strict focus on sovereignty. Three of the key features that $IOTA partner Keystone hardware wallet offers are:

• 100% Air-Gapped: No USB or Bluetooth connections; transactions are signed using QR codes only.
• Fully Open-Source: Ensuring transparency and eliminating concerns over backdoors.
• Zero Backdoor Potential: Built for complete user control with no hidden risks.

With this development, $IOTA users will be able to enjoy a greater level of security for managing their assets.

Keystone’s Integration with $IOTA: A Game-Changer?

Keystone’s integration with $IOTA aligns with the network’s goal of enhancing usability and security. $IOTA operates on a Delegated Proof of Stake (DPoS) consensus mechanism, complemented by compatibility with MoveVM and EVM. The integration comes with several groundbreaking features such as:

• Enhanced Consensus: Promoting efficiency and scalability.
• Local Fee Markets: Reducing transaction costs.
• MultiVM Ledger: Enabling diverse virtual machine capabilities.

Using these features, both $IOTA and Keystone will work towards implementing real-world use cases such as the seamless cross-border transfer of trade data via TWIN. Additionally, it will introduce support for Decentralized Identifiers (DIDs) and Verifiable Credentials (VCs) through $IOTA Identity. As highlighted in our previous report, $IOTA is working on practical blockchain applications in trade, finance, and identity, as a major infrastructure push this year in 2025.

Additionally, Keystone is planning an upcoming integration with a multi-chain crypto wallet Nightly app wherein users can manage $IOTA assets securely and confidently, while signing transactions using the cold wallet.

Building for a Safer Future

$IOTA and Keystone are committed to continuous improvement, with further updates and integrations already in the pipeline. This partnership signifies a leap forward for the $IOTA network, ensuring a smoother and safer experience for its users.

Earlier this month, $IOTA unveiled its much-awaited Rebased protocol upgrade while introducing a new network architecture featuring smart contracts built on the Move language, a Proof of Stake (PoS) consensus mechanism, and a decentralized validator set.