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.

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Filed under: Bitcoin - @ May 25, 2025 6:26 pm