Hardware wallet makers are no longer just selling Bitcoin safes. They are building the personal security platforms they claim are essential for the AI era, arguing current digital identity and computer security are fundamentally broken.
Zach Herbert of Foundation Devices says the approval buttons in modern AI agents are theater. On TFTC, he argued that once an agent like Claude has your AWS keys, any request for permission is a software-side choice, not a hard barrier. If the model is subverted, those guardrails vanish, creating massive risk. His solution is to rebuild the operating system from scratch.
“We are running hyper-intelligent agents inside the same monolithic operating systems that manage our keyboards and screens.”
- Zach Herbert, TFTC: A Bitcoin Podcast
Foundation’s answer is KOS, a microkernel OS written in Rust with a core under 9,000 lines. This architecture uses message passing to force containment, isolating every driver and app. It’s a direct critique of bloated, 30-million-line kernels like Linux’s, which Herbert says cannot distinguish between a human moving a mouse and an AI agent taking control.
This technical pivot enables a business one. Foundation is positioning its Passport Prime as an open alternative to Ledger’s walled garden. By using a security processor with a Memory Management Unit, KOS can isolate third-party apps at the hardware level, giving developers like Cake Wallet a hardened child key instead of master seed access. The goal is a Swiss Army knife for security that handles Nostr keys, FIDO authentication, and file encryption alongside Bitcoin.
The urgency for this shift is underscored by what Gerald Glickman, also on TFTC, calls an identity security collapse. He notes at least 3,000 Americans become victims of identity theft every hour, a rate he calls unacceptable, accelerated by AI deepfakes. He warns that biometric projects like WorldCoin create permanent honeypots - you cannot change your iris.
“You cannot change your iris or your fingerprint. Once a biometric database leaks... the victim is compromised forever.”
- Gerald Glickman, TFTC: A Bitcoin Podcast
Both voices converge on a shared threat model: legacy systems are obsolete, and centralized, trackable identity is a trap. Foundation’s bet is that the market will embrace a dedicated, open hardware device that applies Bitcoin’s principles of explicit human approval and trusted hardware to secure a user’s entire digital life, not just their coins. The window to define this architecture, Glickman warns, may only be open for another year or two.

