Share this article
Coinbase Seeks Patent for Bitcoin Private Key Security System
Bitcoin and ether exchange startup Coinbase is seeking a patent for a security system for bitcoin private keys.
By Stan Higgins
Updated Sep 11, 2021, 12:43 p.m. Published Dec 2, 2016, 1:51 p.m.
Make us preferred on Google
Bitcoin and ether exchange startup Coinbase is seeking a patent for a security system for bitcoin private keys.
According to an application published on 24th November by the US Patent and Trademark Office (USPTO), Coinbase is aiming to patent a “security system forming part of a bitcoin host computer”. Coinbase submitted the application in May of last year, with software engineers Andrew Alness and James Hudon listed as inventors.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
The startup, which has raised more than $116m in venture capital to date, has sought other patents in the past. The last few months have seen a flurry of activity on the patent front, as the USPTO has released applications from startups like Blockstream and Digital Asset Holdings, as well as major firms like AT&T and Nasdaq, that are related to the tech.
Coinbase explained in the application:
“It may be a security concern for users that the private keys of their Bitcoin addresses may be stolen from their wallets. Existing systems do not provide a solution for maintaining security over private keys while still allowing the users to checkout on a merchant page and making payments using their wallets.”
When reached for comment, the company pointed to a blog post from September of last year penned by co-founder and CEO Brian Armstrong detailing its plans to seek patents “to keep them out of the hands of bad people”.
“We support innovation and development in the space and hope to facilitate through sharing of IP,” Coinbase said in an emailed statement.
Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Coinbase.
Image via Shutterstock
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
How a 'perpetual’ stock trick could solve Michael Saylor’s $8 billion debt problem
The bitcoin treasury firm is using perpetual preferreds to retire convertibles, offering a potential framework for managing long-dated leverage.
What to know:
- Strive upsized its SATA follow on offering beyond $150 million, pricing the perpetual preferred at $90.
- The structure offers a blueprint for replacing fixed maturity convertibles with perpetual equity capital that removes refinancing risk.
- Strategy has a $3 billion convertible tranche due in June 2028 with a $672.40 conversion price, which could be addressed using a similar preferred equity approach.
Top Stories
