MoonPay has added support for hardware wallets to its automated trading agents. This allows users to verify transactions and sign them using Ledger. This update is applicable to the firm’s command-line interface wallet, where the keys are stored offline.
According to the announcement, the update allows for hardware signing of the transactions that the automated agents create. The users will be able to sign the operations on the Ledger device. This is to ensure that the keys are never left in an insecure environment.
MoonPay said that the feature is designed to address security vulnerabilities that automated trading systems face. The bots that perform the trading operations must have direct access to the keys in the wallet. This is a weakness that could allow the assets to be compromised.
MoonPay Enables Hardware Approval for Agent Transactions
The new setup will allow the execution of the transactions to be separated from the authorization. The trading agent will create the transaction first. The user will then sign the action on the hardware wallet.
This structure keeps control with the owner of the assets. It also allows automation without transferring custody. The model supports several portfolio management tasks across networks.
The swaps, transfers, and balance management can be done using the CLI system. However, every action still requires manual approval. The device confirmation step is used to ensure that no unauthorized activity is performed.
The system supports several major blockchain networks. The supported blockchain networks include Ethereum, Solana, Arbitrum, Optimism, Polygon, Base, BNB Chain, and Avalanche.
When the Ledger device is connected via a USB, it will communicate with the CLI wallet. The agent will scan the balances on supported chains. The agent will then be able to make recommendations to the user on actions to take, such as bridging the funds or adjusting the asset allocation.
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The proposed action appears on the screen of the hardware wallet. The user physically confirms this request. The transaction cannot proceed without this confirmation.
MoonPay CEO Warns on Autonomous Trading Risks
The model aims to balance between automation and security, according to MoonPay. Autonomous software can be used to boost efficiency in digital assets’ management. However, risk can also be introduced by unchecked automation.
According to Ivan Soto-Wright, the CEO and founder of MoonPay, the approach is as follows: “Autonomous agents may be able to handle large amounts of digital assets. Security should continue to be a core component of that.”
“Autonomous agents will manage trillions in digital assets,” Soto-Wright said. “But autonomy without security is reckless.”
The announcement follows MoonPay’s recent partnership with stablecoin platform M0. The companies introduced PYUSDx, a framework for creating application-specific stablecoins backed by PayPal USD.
Source: X
According to MoonPay, the framework is intended to make it easier to create customized stablecoins. Developers can create tokens for particular applications. The company believes that these tools could help speed up the adoption of stablecoins.
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