Fireblocks moves closer to integrating traditional banks into crypto

Fireblocks has moved closer to achieving its objective of integrating traditional banks and fintechs into the burgeoning crypto sphere, following a successful funding round.

The crypto infrastructure provider raised a total of $133 million through its Series C funding drive, with strategic investment from The Bank of New York Mellon and SVB, with Stripes, Ribbit and Coatue leading the round.

BNY Mellon’s investment follows a similar move by the financial institution regarding cryptocurrency. The firm recently formed a company-wide digital asset initiative aimed at assisting its investors with entering the cryptocurrency space

“Fintechs and banks require not only a specialized custody and settlement infrastructure to ensure customers funds are safely managed, but a platform that enables new lines of digital offerings,” commented Michael Shaulov, CEO of Fireblocks.

“While we have no plans to become a bank, we believe our infrastructure will lend itself perfectly to power an entirely new era of financial services.”

Fireblocks was first established with the intention of developing infrastructure for transferring and storing digital assets to crypto exchanges and institutions.

Last month, the firm formed a partnership with First, launching a secure wallet and infrastructure, enabling financial institutions to connect to the Diem network to efficiently conduct transactions.

The company now works with various traditional banks and fintechs, many of which are becoming increasingly interested in investment opportunities in the burgeoning cryptocurrency sector, and are facing a growing demand from both consumers and their own investors for a greater range of digital asset products and services.

“Developing products to bridge digital and traditional assets is foundational to the future of custody,” remarked Roman Regelman, CEO of Asset Servicing and Head of Digital at BNY Mellon.

“Following significant due diligence and market research, we recognize Fireblocks as a market leader in providing secure technology to support digital asset services.”