IntellaSys on Monday introduced its new OnSpec xSil269 USB memory controller. In case that sounds like gobbledygook: here's the punch line: native, hardware-based 128-bit encryption. While this isn't an earth-shattering novelty, hardware-based encryption is something usually reserved for a PC motherboard and/or software-based encryption, so the addition of an onboard crypto processor to a USB key is a nice addition. Again, what this all means is an additional level of security for your data, in case you're bringing a confidential sales presentation to an off-site partner, or a copy of your financial records to your accountant. In numerical terms, 128-bit encryption means 3.4x1038 possible keys, which translates into some serious computer time to crack your data. (Note that this is different than something like this Kensington USB dongle, which uses a USB key to encrypt your hard drive, not the key itself.)

USB keys using the new Onspec controller will also be ReadyBoost-capable, in case you want to use it to accelerate your Vista OS. That seems like a waste of power, however. If you're looking for a good ReadyBoost drive, check out our roundup.

Onspec didn't reveal the price of the processor, but since the company negotiates with USB thumb-drive companies directly, chances are it wouldn't have much impact. It's in production, however, so you should see it before too long.