Fireblocks, a leading blockchain infrastructure platform, has made a significant acquisition in the form of BlockFold, an Australia-based smart contract development and consulting firm. The deal, estimated to be worth $10 million, will equip Fireblocks with a more comprehensive service offering for its clients, including advisory services, token customization, orchestration, and distribution through the Fireblocks Network.
The main goal of this acquisition is to enhance Fireblocks’ ability to deliver tailored solutions in the field of tokenization projects for financial institutions. By integrating BlockFold’s expertise, Fireblocks aims to better serve its tier-1 financial institution clients, facilitating the smooth and efficient implementation of tokenization projects and the incorporation of new assets onto the blockchain. In addition, this move allows Fireblocks to expand its offerings and adapt to the evolving market demands.
Michael Shaulov, Co-founder and CEO at Fireblocks, highlighted the importance of BlockFold’s capabilities in addressing the specific requirements of sophisticated customers in the banking and financial institutions space. This acquisition will enable Fireblocks to leverage its common understanding of these customers’ needs at an architectural level, streamlining the process of bringing tokenization projects into production.
The significance of tokenization in the financial industry cannot be overstated. Fireblocks has experienced a massive surge in demand for tokenization projects, with a 350% increase between 2022 and 2023 alone. Furthermore, 75% of tier-1 financial institutions are currently exploring tokenization opportunities through the Fireblocks platform. This demonstrates the growing recognition of blockchain technology as a powerful tool for enhancing efficiency, security, and transparency in financial transactions.
Fireblocks has already made significant strides in the realm of tokenization. It has successfully delivered over 10 stablecoin projects, and it is engaged in active discussions with more than 25 banks worldwide regarding the creation of bank-issued stablecoins or tokenized deposits. The company predicts that the value of tokenized money on the blockchain will reach an impressive $450 billion in the next three years.
The acquisition of BlockFold also aligns with Fireblocks’ ambition to revolutionize the bond market through tokenization. In May 2023, Fireblocks enabled the Tel Aviv Stock Exchange and the Israeli Ministry of Finance to tokenize and settle a government bond following a live auction with multiple domestic and international banks. This groundbreaking achievement opens up the possibility of tokenizing Israel’s government debt market, which has an annual worth of $15 billion. Fireblocks expects the value of tokenized bonds on the blockchain to reach $400 billion within the next three years, with a target of $1 trillion by 2028.
BlockFold brings an impressive roster of clients to the table, with 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 among its clientele. Many of these clients are also existing customers of Fireblocks, further strengthening the synergy between the two companies.
As part of the acquisition, the BlockFold team will integrate into Fireblocks. This includes the engineering team joining the Web3 engineering staff and the business consulting team becoming part of the Financial Markets group. Co-founder Francois Schonken will assume the role of Senior Director, Tokenization Business Lead at Fireblocks, while co-founder Terence Siganakis will serve as Senior Director, Head of Tokenization Products.
The acquisition of BlockFold by Fireblocks marks an important milestone in the continued advancement of blockchain technology in the financial industry. With their combined expertise and resources, the two companies are poised to become leaders in the field of tokenization, bringing increased efficiency, transparency, and security to the financial ecosystem.
