Neobank EQIFi has partnered with Wyoming-based firm MatterFi to combat crypto security concerns by combining web2 security methods with improved web3 techniques.

An ImmuneFi report highlighted that hackers stole over $200 million worth of digital assets during the first quarter of 2024. According to EQIFi and MatterFi, the research underscores that traditional security options like alphanumeric passwords and two-factor authentication are outdated in today’s digital landscape. 

To enhance crypto security and address issues of theft, fraud, and digital asset money laundering, the Neobank has tapped MatterFi’s patent-pending technology. The collaboration will offer private “send-to-name” blockchain addresses through a peer-to-peer platform. 

EQIFi’s automatic on-chain compute model allows users to send any crypto token like Ethereum (ETH) ERC-20 assets to a recipient via a name, and the counterparty may leverage cryptographic proof to verify their identity. This system aims to move away from legacy password systems and support wallet interaction with centralized finance platforms akin to decentralized applications (dapps).

The companies told Coin Insider Daily that this protocol and custody solution maintains decentralized data sharing and storage, preserving the ethos of blockchain transactions. MatterFi CTO Billy Mullins noted that the collaboration aims to deliver next-generation KYC/AML facilities for retail and institutional clients during heightened crypto security demand.

“Our teams anticipate that this collaboration will create positive change and provide a brighter future for everyone in the crypto space” added EQIFi co-founder and CEO Brad Yasar.