Foundation Raises $6.4M as Hardware Wallet Firms Move Into AI Security

Foundation has raised $6.4 million in a new funding round led by Fulgur Ventures, as the company broadens its business beyond bitcoin hardware wallets into identity security and AI authorization systems. The round also included participation from Arche Capital. Foundation said the latest financing brings its total funding to $16.5 million, though the company undisclosed valuation details or whether the raise included equity or convertible financing.

The funding comes as cybersecurity firms and digital asset infrastructure providers increasingly position themselves around risks linked to autonomous AI systems. Companies across the sector are developing tools intended to ensure human oversight remains part of financial transactions, credential access, and automated software workflows.

Foundation, which previously focused primarily on bitcoin self-custody devices, said the new capital will support expansion into:

• AI agent authorization
• Identity verification systems
• Multi-factor authentication infrastructure
• Enterprise security workflows
• Developer tools for hardware-based approvals

Passport Prime launch marks strategic shift

Alongside the funding announcement, Foundation confirmed wider availability of Passport Prime, a hardware device that combines several security functions into a single system.

The product includes:

• Bitcoin hardware wallet functionality
• FIDO authentication keys
• Two-factor authentication storage
• Encrypted secrets management
• 50GB encrypted storage

Passport Prime began shipping to pre-order customers earlier this year and is now available for broader purchase. The launch reflects a broader shift in the hardware wallet market, where providers are increasingly attempting to diversify beyond crypto storage as competition intensifies and institutional demand evolves. The growing focus on AI-driven authorization also comes amid rising concerns over potential hardware wallet security breach risks and the need for stronger offline approval systems.

Foundation argues that AI agents capable of executing tasks autonomously create a new category of security challenge. The company says approval systems tied to browsers, smartphones, or cloud applications may become unreliable if AI software itself controls those environments.

Chief executive Zach Herbert said authorization systems for AI-driven actions should operate independently from the machines running the agents themselves. The company is positioning Passport Prime as a dedicated hardware checkpoint for sensitive digital actions rather than solely a cryptocurrency storage device.

KeyOS developer platform expands

Foundation also expanded access to KeyOS, its internally developed operating system and software platform. The system, built using the Rust programming language, allows developers to create applications designed to run directly inside dedicated security hardware.

Foundation said the platform’s software development kit is now available to external developers building applications involving transaction approvals, identity systems, and AI-related workflows. The company plans to launch a KeyOS application marketplace later this year. Cake Wallet was named as the first external company developing applications on the platform.

AI security infrastructure attracts investor attention

Foundation’s fundraising reflects growing investor interest in AI-related security infrastructure. As AI systems gain the ability to interact with APIs, financial tools, cloud dashboards, and enterprise software autonomously, cybersecurity firms are increasingly focusing on “human-in-the-loop” approval mechanisms designed to prevent unauthorized automated actions. Recent events such as the Bankr AI wallet security incident have also intensified industry discussions around securing AI-connected crypto platforms and digital asset authorization systems.

The trend extends beyond crypto markets. Enterprise authentication providers, cloud security firms, and digital identity startups have all introduced products aimed at adding verification layers between AI systems and sensitive operational controls.

Within digital assets, hardware wallet manufacturers are also facing pressure to evolve beyond basic offline key storage products. Institutional users increasingly expect integrated policy controls, authentication systems, and enterprise-grade approval tools alongside custody services. Foundation said it expects additional integrations across bitcoin services, identity platforms, and AI-related applications through 2026.

FAQs

1. What does Foundation do?
Foundation develops bitcoin self-custody hardware devices and security-focused infrastructure tools.

2. How much funding did Foundation raise?
The company raised $6.4 million in a funding round led by Fulgur Ventures with participation from Arche Capital.

3. What is Passport Prime?
Passport Prime is a hardware security device that combines bitcoin custody, authentication tools, encrypted storage, and approval systems.

4. Why is Foundation expanding into AI authorization?
The company believes autonomous AI systems will require independent hardware-based approval systems to ensure sensitive digital actions still require human authorization.