Fireblocks, a leading crypto custody and infrastructure provider, has announced the acquisition of BlockFold, a smart contract development and consulting firm that specializes in advanced tokenization projects for financial institutions. The deal, which is reportedly worth $10 million, will enhance Fireblocks’ tokenization capabilities and enable it to offer a complete service layer that includes advisory, token customization, orchestration, and distribution through the Fireblocks Network.
Tokenization: A Growing Trend in the Financial Industry
Tokenization is the process of creating digital representations of real-world assets on the blockchain, such as stocks, bonds, commodities, real estate, art, and more. Tokenization can provide benefits such as increased liquidity, lower costs, faster settlement, fractional ownership, and global access. According to a report by BCG, the tokenization of financial assets on the blockchain will grow into a $16 trillion market by 2030 and will represent 10% of all financial assets.
Fireblocks has been at the forefront of tokenization innovation, having delivered more than 10 stablecoin projects and being in active conversations with more than 25 banks globally who are exploring the creation of bank-issued stablecoins or tokenized deposits. Fireblocks expects the value of tokenized money on the blockchain to reach $450 billion within the next three years.
BlockFold: A Smart Contract Expertise
BlockFold is a smart contract development and consulting firm based in Australia that focuses on advanced tokenization projects for financial institutions. BlockFold has worked with clients such as Bank of New York Mellon, BNP Paribas, and the Tel Aviv Stock Exchange to design and implement tokenization solutions using various blockchain platforms and standards.
BlockFold’s expertise fills an important gap in the market, as many financial institutions require bespoke solutions for their specific use cases and regulatory environments. By bringing BlockFold’s expertise in-house, Fireblocks will be able to better serve tier-1 financial institutions to quickly and seamlessly bring tokenization projects into production and new assets onto the blockchain.
Fireblocks: A Crypto Custody and Infrastructure Leader
Fireblocks is a crypto custody and infrastructure provider that enables banks, fintechs, exchanges, liquidity providers, OTC desks, and institutional investors to securely store, transfer, and issue digital assets. Fireblocks has over 500 customers across six continents and supports over 400 tokens and cryptocurrencies. Fireblocks also operates the Fireblocks Network, a secure and scalable network that connects over 400 participants and enables instant settlement of digital assets.
Fireblocks has raised over $500 million in funding from investors such as Coatue Management, BNY Mellon Strategic Ventures, Ribbit Capital, Paradigm, Galaxy Digital Ventures, Stripes Group, SVB Capital, Cyberstarts Ventures, Tenaya Capital, Swisscom Ventures, and others. Fireblocks has a valuation of over $2 billion and is one of the fastest-growing companies in the crypto space.
A Strategic Move for Both Parties
The acquisition of BlockFold by Fireblocks is a strategic move for both parties, as it will create synergies and opportunities for growth in the tokenization market. Fireblocks will be able to leverage BlockFold’s smart contract expertise and experience to expand its tokenization services and offer a complete solution for its customers. BlockFold will benefit from Fireblocks’ global reach, customer base, network effect, and resources to scale its operations and impact.
Michael Shaulov, Co-founder & CEO at Fireblocks said: “We already speak a common language in understanding these customers’ requirements at an architectural level. Bringing BlockFold’s expertise in-house means that we can better serve tier-1 financial institutions to quickly and seamlessly bring tokenization projects into production and new assets onto the blockchain. In addition, we can continue to innovate and expand our offerings and tailor our approaches as the market continues to mature and evolve.”