Entropy

Blockchain Infrastructure / Crypto Custody Softwareentropy.xyz

Entropy was a private crypto infrastructure company that built decentralized key management and signing using Distributed Key Generation and Threshold Signing MPC protocols. It targeted institutional clients seeking self-custody alternatives and shut down in January 2026 after failing to achieve venture-scale traction.

Company typePrivate
Founded2021
HeadquartersNew York, United States
Headcount1–10
GTM typeB2B
OfferingSoftware

What Entropy does

Entropy was a private crypto infrastructure company founded in late 2021 by Tux Pacific and incorporated in Delaware as Entropy Cryptography, Inc. The company built a decentralized key management and signing platform based on Distributed Key Generation (DKG) and Threshold Signing (MPC) protocols, designed to enable crypto custody without a trusted third party. It originally positioned itself as a decentralized alternative to centralized custodians such as Fireblocks, targeting institutional clients seeking self-custody solutions.

The company's core product was the 'Autonomous Agent Network,' a platform that combined cryptographic primitives (DKG and threshold signing) with WebAssembly-based 'Programs' executables that defined the rules under which signatures, transactions, or attestations would be generated. This allowed customizable agent behavior and programmatic control of signing workflows. Over its operational history the company pivoted from decentralized custody toward AI-driven crypto automation, executed at least two rounds of internal restructuring and layoffs, and repositioned the product multiple times in search of product-market fit.

Entropy raised approximately $27 million across two funding events: a SAFE instrument exempt offering in December 2021 and a $25 million seed round in June 2022 led by Andreessen Horowitz (a16z) with participation from Coinbase Ventures, Dragonfly Capital, Variant, and Robot Ventures. The company was privately held, employed between 1 and 10 people, never publicly disclosed revenue or pricing, and operated a developer-centric, self-service go-to-market model through GitHub, Discord, Twitter, and developer documentation. On January 26, 2026, founder and CEO Tux Pacific announced the complete shutdown of the company and the return of remaining capital to investors, citing failure to find a venture-scale business model.

Entropy firmographics

Firmographics

Name: Entropy
Legal name: Entropy Cryptography, Inc.
Website: https://entropy.xyz
Company type: Private
Founded year: 2021
Operating status: Closed
Headcount range: 1–10 employees
Short description: Entropy was a private crypto infrastructure company that built decentralized key management and signing using Distributed Key Generation and Threshold Signing MPC protocols. It targeted institutional clients seeking self-custody alternatives and shut down in January 2026 after failing to achieve venture-scale traction.
Ownership category
akta.pro rank

Entropy industry classification

Industry

Product category: Blockchain Infrastructure / Crypto Custody Software
NAICS: Financial Transactions Processing, Reserve, and Clearinghouse Activities (522320)
SIC: Finance Services (6199)
akta.pro primary industry: Key Management Infrastructure (HSMs, key vaults, MPC/TSS key mgmt, rotation) (FSAPACAE)
akta.pro secondary industries: Decentralized Storage, Compute & Networking (IPFS/Filecoin, compute markets, DePIN) (FSAPAAAK), Authorization & Permissions (delegation, allowances, capability-based access, session keys) (FSAPACAJ)

Keywords

Crypto custody
Multi-party computation
Threshold cryptography
Decentralized key management
Autonomous agent network

Where Entropy is headquartered

Location

Headquarters

HQ city: New York
HQ country: United States
HQ region: North America

Markets served

Entropy business model

Business model

GTM type: B2B
Offering type: Software
Cost components: Personnel, Technology or R&D, Marketing or Sales, Others

Distribution channels1 record

Marketing channels4 records

Entropy product offering

Product offering

Core offering

Entropy operated a decentralized crypto custody and autonomous agent platform built on Distributed Key Generation (DKG) and Threshold Signing (MPC) protocols, enabling users to control private keys and sign crypto transactions without a trusted third-party custodian. Its WebAssembly-based "Programs" executables defined programmable rules for when and how signatures, attestations, or arbitrary data were generated by the network. The platform positioned itself as a decentralized alternative to centralized custodians such as Fireblocks, later repositioning as an Autonomous Agent Network.

Product overview

Entropy operated as a single unified platform offering that evolved through multiple pivots. Originally launched as a decentralized crypto custody platform using multi-party computation (MPC), the company repositioned as an Autonomous Agent Network with Programs as WebAssembly executables that determine how and when signatures are generated for crypto transactions, attestations, or arbitrary data. The platform utilized Distributed Key Generation (DKG) and Threshold Signing (MPC signing) as core cryptographic primitives to eliminate single points of trust. The company ceased operations on January 26, 2026, after failing to find a venture-scale business model despite approximately $27 million in total funding from Andreessen Horowitz, Coinbase Ventures, Dragonfly, and other investors.

Differentiator

Problem solved

Functional benefit

Products and services

Entropy Autonomous Agent Network Entropy's core platform combining decentralized crypto custody with an autonomous agent framework. It enables secure distributed key generation, threshold-based signing of crypto transactions and attestations, and customizable WebAssembly Programs that define agent signing behavior. Originally targeted at institutional clients seeking a decentralized alternative to centralized custodians like Fireblocks.

Companies that use Entropy

Customer profile

Segments1 record

Ideal customer profiles1 record

Entropy technology and API

Technology

Technology focussed Yes

API detail

Has API: No
API docs
API detail

Core technology

AI maturity

App detail

AI capability2 records

Feature3 records

Entropy partnerships and signals

Strategic signal

Partnerships

Four partnerships are on record, tiered minor.

NuCypherminorOthersListed as an 'Angel' on Entropy's website, indicating an ecosystem or advisor relationship in the crypto space.
CelestiaminorOthersListed as an 'Angel' on Entropy's website, indicating an ecosystem or advisor relationship.
PolkadotminorOthersListed as an 'Angel' on Entropy's website, indicating an ecosystem or advisor relationship.
FlashbotsminorOthersListed as an 'Angel' on Entropy's website, indicating an ecosystem or advisor relationship in the crypto infrastructure space.

Scale indicators4 records

Recent moves6 records

Expansion highlights4 records

Entropy competitors and assessment

Company assessment

Direct peers

Fireblocks: Fireblocks is the leading institutional crypto custody and transfer platform using MPC. Entropy explicitly positioned itself as a decentralized alternative to Fireblocks, making it the closest comparable in target market and core technology approach.
Qredo: Qredo offered decentralized crypto custody using multi-party computation and a distributed validator network — a near-identical architectural and market approach to Entropy's DKG + threshold signing stack.
Lit Protocol: Lit Protocol provides decentralized key management and threshold signing infrastructure for wallets and agents using MPC and DKG — the same cryptographic primitives as Entropy, targeting developers building autonomous on-chain applications.
Web3Auth: Web3Auth (formerly Torus) offers non-custodial key management and authentication for Web3 wallets using threshold cryptography and sharded key infrastructure, directly comparable to Entropy's MPC-based custody architecture.
ZenGo: ZenGo is a consumer-facing MPC-based self-custodial wallet using threshold key generation to eliminate single points of failure — a similar architectural approach to Entropy but oriented toward retail rather than institutional clients.

Broad incumbents

Anchorage Digital: Anchorage is a federally chartered digital asset bank providing institutional crypto custody with MPC-backed security, targeting the same institutional client base Entropy pursued but with full regulatory licensing.
BitGo: BitGo is a large-scale institutional crypto custody and prime brokerage provider using multi-signature and MPC, competing for the same institutional treasury and trading customers Entropy targeted.
Coinbase Custody: Coinbase Custody is the institutional custody arm of Coinbase and an Entropy investor (Coinbase Ventures participated in the seed). It represents the centralized incumbent with regulatory and scale advantages Entropy's decentralized model could not overcome.
Ledger: Ledger is the dominant hardware wallet provider and has expanded into institutional custody and MPC-based key management services via Ledger Enterprise — a broad incumbent offering self-custody solutions to a similar customer base.

Emerging players

Safe (formerly Gnosis Safe): Safe provides smart contract-based multi-signature self-custody for digital assets and DAOs, competing with Entropy in the decentralized custody space but using on-chain multisig rather than off-chain MPC threshold signing.

Market position

Weaknesses4 records

Competitive moat2 records

Key risks5 records

Key highlights5 records

Customer concentration

Entropy financial estimates

Financial estimate

Revenue estimate

Valuation estimate

Entropy leadership team

Management profile

Number of profiles

Profiles1 record

Entropy funding detail

Funding detail

Funding overview

Funding rounds2 records

Investors9 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

Entropy M&A and investment

M&A and investment

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Entropy

What does Entropy do?

Is Entropy a public or private company?

Entropy is a private company. It is classified as venture growth investor backed and is currently closed.

When was Entropy founded?

Entropy was founded in 2021. It employs 1 to 10 people.

Where is Entropy based?

Entropy is headquartered in New York, United States, in the North America region.

Who are Entropy's main competitors?

Direct peers on record are Fireblocks, Qredo, Lit Protocol, Web3Auth and ZenGo. Broad incumbents are Anchorage Digital, BitGo, Coinbase Custody and Ledger. Safe (formerly Gnosis Safe) is listed as an emerging player.

Does Entropy have an API?

No public API is recorded for Entropy.

What industry is Entropy in?

Entropy's product category is Blockchain Infrastructure / Crypto Custody Software. Its primary akta.pro industry code is FSAPACAE, Key Management Infrastructure (HSMs, key vaults, MPC/TSS key mgmt, rotation), with a secondary code of FSAPAAAK, Decentralized Storage, Compute & Networking (IPFS/Filecoin, compute markets, DePIN). Its NAICS code is 522320 and its SIC code is 6199.