As Bitcoin’s value soars, so do the threats posed by artificial intelligence. Paris-based hardware wallet manufacturer Ledger aims to leverage its leadership in crypto security to redefine digital identity protection.

The crypto market has rebounded, bigger and stronger than ever. Bitcoin is on the verge of surpassing $100,000, meme coins are emerging rapidly, and a new wave of traders is flooding the market. This surge in interest brings a perennial issue back into focus: the constant threat of hacking. In the first half of this year alone, cybercriminals have stolen $1.3 billion from crypto investors, up from $657 million during the same period last year.

Enter Ledger, a Parisian company founded in 2014, which has spent a decade perfecting cryptocurrency protection. The company’s flagship product is a hardware wallet—a portable hard drive that functions as a high-tech vault for digital wealth. Upon setup, Ledger generates a 24-word recovery phrase—a key that remains valid on a new device if the old one is damaged or lost. To execute transactions, users connect the device to their computer and manage their cryptocurrencies via the Ledger Live application. Settings require physical confirmation of all transactions through buttons on the hardware itself. This ensures that even if a hacker breaches the computer, they cannot access funds without the physical device and the 24-word phrase.

Never Been Hacked

“In security, the only test that counts is the test of time,” says Pascal Gauthier, the 48-year-old CEO of Ledger. So far, Ledger has passed that test with flying colors. In its 10 years of existence, Ledger’s wallets have never been hacked.

Over the past two weeks, Bitcoin’s price has risen from $68,000 to $98,000, providing a significant boost to Ledger’s business. The company reports a threefold increase in sales and a 3.5-fold growth in transactions on its application.

But Gauthier aims higher. “Cryptocurrencies are at the core of what we do, but we are becoming—actually, we’ve always been, but it’s now evident to everyone—a cybersecurity company,” he explains.

This ambition means Ledger will soon compete with tech giants like Apple and Google, whose password management services, iCloud Keychain and Google Password Manager, are widely used. However, Gauthier argues that smartphones have fundamental security weaknesses. What about popular software wallets like MetaMask or Phantom? “A terrible choice for security,” he states bluntly. “People who have invested heavily in this industry know this very well.”

The company has raised $600 million in funding and is valued at $1.5 billion. They claim to have sold over 7 million devices in 210 countries and secure 20% of the world’s cryptocurrencies—worth at least $400 billion, according to Forbes. Despite a one-year delay in launching the Ledger Stax, the company’s first device designed by Tony Fadell, creator of the iPod and founder of Nest Labs, Ledger is on track to reach $1 billion in cumulative 10-year revenue. The company says it is profitable but does not disclose details.

Hardware at the Core, Services Driving Growth

Hardware remains central to Ledger’s business, but services account for much of its recent growth. Ledger Live, a mobile app for buying, swapping, and staking cryptocurrencies and NFTs, and Ledger Enterprise, a platform for corporate digital assets, now constitute nearly half of the company’s expansion. The strategy is clear: diversify beyond hardware amid increasing competition. Rivals include hardware wallet maker Trezor from Prague and centralized exchanges like Binance and Coinbase, which remain the first choice for investors and have millions of clients holding cryptocurrencies.

“When the market seemed pessimistic in 2022 and 2023, the question was whether to lay off everyone, halt operations, protect cash, and wait for the market to recover, or continue investing? We decided to keep investing,” recalls Gauthier. “My board asked me several times if I was sure, but I was because you want to be ready when sales pick up. You need to have something to sell.”

Expanding Beyond the Crypto Market

Ledger is extending its reach beyond cryptocurrencies, aiming to redefine digital security. Last month, they introduced Ledger Sync, addressing the reliance on centralized servers for storing passwords and emails. Sync returns control to users by generating encryption keys directly on their devices, inaccessible even to the company.

In September, the company launched another ambitious product, Security Key, an app that allows users to utilize their Ledger device with websites supporting passkeys. These keys are generated through biometrics like fingerprints or facial recognition, or via multi-factor authentication (MFA). Security Key marks Ledger’s entry into the authentication market, projected to reach $40 billion by the end of the decade. The company is also addressing the growing issue of AI fraud and digital identity theft.

“The crypto wallet market is limited, probably to a few hundred million dollars,” says Benchmark analyst Mark Palmer. “The authentication market is several times larger.”

Challenges and Competition

Ledger asserts that its devices are more than just hardware—they are platforms for building an entire ecosystem of secure services. Unlike software-based solutions, Ledger’s hardware generates encryption keys offline, reducing the risk of remote compromise.

Ledger’s growth hasn’t been without issues. Last year, they faced significant criticism for introducing Ledger Recover, a feature designed for users concerned about losing their recovery phrases. It enables account recovery through identity verification with partner company Onfido. Some critics viewed this as a betrayal of Ledger’s core promise: private keys never leave the device. The backlash prompted Gauthier to respond directly in a blog post, emphasizing that Recover is entirely optional. He also pledged to accelerate plans to open Ledger’s software code for public