The CEO of crypto ‘SuperApp’ Kresus is not your typical Web3 executive. A serial entrepreneur who has architected sell-offs to buyers including Microsoft and MasterCard, Trevor Traina also served as the U.S. Ambassador to Austria from 2018 to 2021.
According to The New Yorker, Traina’s diplomatic tenure led to a “new closeness” between the nations, known as Verbundenheit. Earlier this year, the businessman helped San Francisco-based Kresus raise $25 million in Series A funding as it seeks to establish itself as the go-to web3 app for everyday consumers.
Web3 Wallets Need to Do More
The premise of Kresus is simple: web2 ease-of-use combined with web3 bells and whistles. A non-custodial mobile wallet, Kresus acts as a convenient gateway to the blockchain world, letting users mint and share NFTs, buy and trade digital assets, access dApps and educational resources, and more.
The Winklevoss twins were among a range of high-profile investors who pushed Kresus’ raise to the $25 million ballpark back in March, with Traina indicating the war chest would be used to invest in product development and recruitment. But what pulled him into the web3 world in the first place? It’s not the obvious pivot for an entrepreneur turned high-level diplomat.
“‘I’ve been building companies since the dawn of Web 1.0 and have not been as excited about a new platform since,” says Traina. “When we think of blockchain, people immediately go to cryptocurrencies but I see a more profound innovation: the universal ledger. That combined with smart contracts will change everything. Although there are basic tools for a number of different chains, no one has thought holistically about building an app that unlocks all of this utility. That opportunity brought me into the category.”
Naturally, Traina views Kresus as the app in question. Rather than seek to compete with the raft of non-custodial wallets already on the market, the CEO has positioned the startup as a one-stop shop, a do-everything platform that can onboard the next wave of users to crypto. “I see non-custodial mobile wallets transforming into something more comprehensive than just tools for storing digital currency,” he says. “Why should they be limited to a single function when they can integrate different functionalities to cater to the needs of Web3 users? You know, gamers, traders, stakers, holders, casual everyday consumers, and the hardcore super users.
“I believe the key to this evolution lies in the integration of multiple functionalities within a single interface: yes, Kresus is a wallet but it’s so much more because you can use it to mint NFTs, trade and generate a .kresus Web3 domain through our integration with Unstoppable Domains. This domain can, in turn, be used to access dApps and games, instead of a long wallet address. This is where the industry is heading.”
No Private Keys, No Problem
Noncustodial wallet users, in contrast to those whose funds reside in hot wallets on centralized exchanges, prefer the peace of mind that comes from independently managing their portfolio and accessing it via private keys. Interestingly, though, Kresus doesn’t require key phrases or even passwords. So, how do users access their funds – and recover access in the worst-case scenario?
“Private keys are great but they ask a lot of the user and come with their own risks,” Traina explains. “With Kresus, we’re not burdening users with the responsibility of safeguarding keys, instead we use a wallet infrastructure and SDK called Magic and store the key on an AWS Hardware Security Module (HSM) designed for highly sensitive data. This key is fully encrypted, giving it the same level of security you’d expect from a hardware wallet.
“Instead of a password, users access their account by clicking on a link embedded in an email; there’s also 2FA to add an extra level of security. If you lose access to your email, you can still access your account, as the Kresus Vault uses MPC and Account Abstraction to terminate the need to remember passphrases or fear getting locked out”.
Key-less crypto access isn’t completely novel: some noncustodial wallet applications use biometric facial scans to securely sign transactions without private keys, while others utilize smart contracts instead of seed phrases. It isn’t just about lowering the barriers to entry, however; private keys are a vulnerability in and of themselves, should they fall into the wrong hands. And if you misplace your own keys, your account is non-recoverable. Just ask Stefan Thomas.
For Kresus, dispensing with private keys is only part of the package. The main USP is that it’s a SuperApp that can do many things at once. Case in point: Kresus’ integrated marketplace which grants users access to a series of curated projects occupying a niche in the web3 ecosystem. “A Web3 super app has to effectively unify and streamline multiple account attributes across various chains to provide a smooth UX,” says Traina. “It’s a complex challenge given the fragmented nature of the blockchain ecosystem but we tackle it by leveraging user-centric design principles.
“Our app is built to seamlessly interact with various networks, allowing users to manage their crypto across different chains from an intuitive interface. We’ve focused on abstracting the complexities of blockchain so anyone can interact with it. As for our marketplace, there are DEXs, domain name registries, stablecoin protocols, metaverses, NFT collections, liquidity protocols – the great thing is, you can access them all from within the app.”
The Need for Regulatory Stability
Regulation of the cryptocurrency industry is a topic that’s always in the news, and the consensus among Web3 players appears to be that U.S. legislation is, at best, ambiguous. Federal agencies are divided about how to classify the asset class while in the EU, the forthcoming Markets in Crypto Assets (MiCA) legislation makes it the first major jurisdiction to introduce comprehensive rules for the sector.
Traina, like many of his peers, is frustrated by the Security and Exchange Commission’s current stance. “I think the SEC is out of their mind and that a change of regime is required,” he says bluntly.
“When we think about the Internet, almost all of the most important companies are based in the United States. It is a tremendous competitive advantage. However, with the blockchain, 18 of the 20 largest projects are located outside of the US. This country simply cannot afford to be so hostile and so unclear with regard to such a key technology of the future.”
