Fireblocks’ $10 Million Acquisition to Enhance Tokenization Services

Fireblocks’ $10 Million Acquisition to Enhance Tokenization Services

Blockchain
unicorn Fireblocks has made a strategic move by acquiring Australia-based
BlockFold, a smart contract development and consulting firm specializing in
advanced tokenization projects for financial institutions.

This
acquisition is estimated to be valued at $10 million. It is poised to enhance
Fireblocks’ ability to offer clients a comprehensive service layer that
encompasses advisory services, token customization, orchestration, and
distribution through the Fireblocks Network.

Expanding
Fireblocks’ Service Layer with BlockFold Acquisition

The
decision to acquire BlockFold comes on the heels of rapid growth in demand for
tokenization projects witnessed by Fireblocks. The company reported an
impressive increase of 350% in tokenization projects between 2022 and 2023.
Moreover, an astounding 75% of tier-1 financial institutions have been
exploring tokenization through Fireblocks’ platform.

Commenting
on this development, Michael Shaulov, the Co-Founder and CEO at Fireblocks, noted:
„BlockFold’s expertise fills an important gap in the market, tailoring
bespoke solutions for some of our most sophisticated customers and prospects in
the banking and financial institutions space.”

He
added: „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.”

Fireblocks
has taken the initiative to tokenize various financial assets. Since
introducing the first bank-issued stablecoin for ANZ in March 2022, Fireblocks
has successfully delivered over 10 stablecoin projects.

Moreover,
it is actively engaged in exploring the creation of
bank-issued stablecoins or tokenized deposits with more than 25 global banks. Within the next three years,
Fireblocks envisions the value of tokenized money on the blockchain to reach an
impressive $450 billion.

Fireblocks Sets Ambitious
Targets for Tokenized Bond Values

From
May 2023, Fireblocks enabled the Tel Aviv Stock Exchange and the Israeli Ministry of
Finance to tokenize and settle a government bond after a live auction involving
five domestic banks and seven global banks. As the sole issuers of Israeli government
bonds, both parties now have a credible path to tokenize Israel’s government
debt market, valued at $15 billion annually.

Fireblocks
has set ambitious goals. The firm is targetting the value of tokenized bonds on the
blockchain to reach $400 billion within the next three years. It assumes these targets with
a long-term vision of hitting $1 trillion by 2028.

BlockFold’s
esteemed clientele, which are also existing Fireblocks customers, include major institutions such as the Bank of
International Settlements, Swiss National Bank, Banque de France, Singapore’s
Ministry of Finance, Tel Aviv Stock Exchange, National Australia Bank, and ANZ
Bank.

BlockFold Team Integration
Strengthens Fireblocks

The BlockFold team has joined forces with
Fireblocks as
a component of the integration process. Additionally, the engineering team has merged to be part of the Web3 engineering staff. The business
consulting team is fusing with the Financial Markets group. Francois Schonken, a Co-Founder, has been appointed to Senior Director and Tokenization Business Lead at Fireblocks. Further, Terence Siganakis, another Co-Founder, will take on the role
of Senior Director and Head of Tokenization Products.

This
acquisition is expected to solidify Fireblocks’ position in the blockchain
and tokenization space. It will enable it to provide a broader range of services
to its client base in the financial industry.

The
world of blockchain and tokenization is continuing to
evolve. Fireblocks’ strategic acquisition of BlockFold is positioning itself to navigate
the changing landscape and deliver innovative solutions to its clients. Market
participants and financial institutions will be closely monitoring Fireblocks’
future developments as the company plays a role in the digital transformation of the
financial sector.

This article was written by Tareq Sikder at www.financemagnates.com.

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