Foundation CEO Zach Herbert urges hardware wallet makers to build locally

Zach Herbert, co-founder and CEO of Foundation Devices, has a simple message for hardware wallet makers: build your devices close to home. His argument is that the more hands a wallet passes through before it reaches a buyer, the more chances someone has to tamper with it.

That warning lands in the wake of a supply chain incident involving Ledger devices, estimated to have cost between $86 million and $100 million. Herbert is pushing manufacturers to prioritize local assembly and to ship devices straight from the factory to customers.

The Ledger incident

Herbert's comments follow an October 2026 supply chain breach involving Ledger. Tampered hardware sold through resellers was tied to the theft of funds estimated between $86 million and $100 million. The case has sharpened debate about security practices in the hardware wallet industry.

Foundation's approach

Foundation Devices has positioned its Passport hardware wallet line as an example of the approach Herbert is advocating. The company builds its Passport devices entirely in the US, with assembly taking place in an ITAR-certified facility.

The devices also include active tamper circuitry, meaning the hardware is designed to respond when someone tries to physically interfere with it. Foundation pairs that with open-source software designs.

Market segmentation

Herbert has offered a view of where the hardware wallet market could be heading. He suggests it may segment into two distinct streams: high-security domestic products with features like device bricking, and DIY options often used in multisig arrangements.

For consumers, the practical takeaway is that device provenance now deserves the same attention as device features. Buying directly from a manufacturer rather than through a reseller is the most obvious step that follows from Herbert's argument.