Bitcoin And Crypto Custodian Raises $310 Million To Achieve $2 Billion Valuation
On Tuesday morning Fireblocks, an Israeli-based crypto custodian focused on institutions, announced that it raised $310 million through a Series D round of funding. It gives the firm a valuation of $2 billion.
In what is becoming a familiar pattern for crypto startups, this announcement comes in quick succession to its $133 million Series C completed in March 2021. To date it has raised a total of $489 million in funding since its inception in 2019. Fireblocks was also a member of the 2021 Forbes’ Fintech 50 list.
The round was co-led by new investors Sequoia Capital and SCB 10X, the venture arm of Siam Commercial Bank, along with existing investors Coatue, Stripes, Spark Capital, and DRW VC. Siam Commercial Bank is now the third global bank to invest in Fireblocks along with BNY Mellon and SVB Capital.
“The fact that we significantly increased the balance sheet and more so the valuation is a very strong statement to the market that we are here for the long haul and that we are not going to be bought out by someone”, says Michael Shaulov CEO and co-founder of Fireblocks.
Fireblocks does not have a consumer-facing product but instead sells its services to financial institutions such as banks, hedge funds, exchanges and lending desks. A key differentiating feature for Fireblocks’s custodial offering is its use of a novel form of wallet security known as multi-party computation (MPC), which is decentralized, protocol agnostic and more flexible than the current standard multi-sig. Short for multiple signature, multi-sig means that a certain number of approved signers must authorize a transaction (think the two of two rule for launching nuclear missiles in the movies).
As expected due to the surging institutional interest this year in crypto, Fireblocks has seen dramatic growth in users and volume. Fireblocks went from 100 clients to 450 in the span of a few months in sectors such as crypto trading, crypto retail and traditional financial institutions. Since its inception in 2019 Fireblocks has secured over 1 trillion in digital assets.
Aside from doubling down on its core business, Fireblocks will use these funds to help traditional financial institutions move into new use cases of blockchain and expand offerings outside of the buy bitcoin domain to payments, security tokens and other financial products into blockchain.
It also plans to move into the digital securities space which Shaulov thinks is poised to become a trend in the future with bitcoin paving the way for interest in this area. “In 2017 the banks were not serious about [digital securities]. What we are seeing right now is that this conversation and this discussion is driven by the most senior leadership within banks” says Shaulov.Source