Fireblocks Valuation Soars to $8B in Six Months

Fireblocks Achieves $8 Billion Valuation, Solidifying Position in Digital Asset Infrastructure

Fireblocks, a leading crypto custody platform, has been described by its co-founder and CEO, Michael Shaulov, as potentially “the most successful and least-known company in the blockchain space.”

Recent Funding and Valuation Growth

The company recently announced a significant milestone: it is now the highest-valued digital asset infrastructure provider globally.

This achievement follows a successful Series E funding round, resulting in an $8 billion valuation – a nearly fourfold increase compared to its Series D round just six months prior.

Details of the Series E Funding

The $550 million funding round was co-led by D1 Capital Partners and Spark Capital.

Additional investors included General Atlantic, Index Ventures, Mammoth, Alphabet’s CapitalG growth fund, Altimeter, Iconiq Strategic Partners, Canapi Ventures, and Parafi Growth Fund.

Since its founding in 2018, Fireblocks has now raised over $1 billion in total funding.

Core Product and Services

Fireblocks’ core offering empowers financial institutions – including Bank of New York Mellon, BlockFi, and eToro – to directly manage custody of digital assets.

The platform currently supports custody solutions across 25 different blockchains.

Platform Functionality

According to Shaulov, Fireblocks operates as a SaaS solution, enabling clients to manage their own custody using secure, institutional-grade wallets.

Rapid Growth and Expansion

Fireblocks experienced substantial growth throughout 2021, expanding its client base from 100 to 800.

The total value of assets secured on the platform doubled to $2 trillion during the same period.

Revenue also saw a remarkable 600% increase, reaching between $50 and $100 million.

Competitive Landscape

Two major competitors in the crypto custody infrastructure sector, Curv and Unbound Security, were acquired last year by PayPal and Coinbase, respectively.

Consequently, Fireblocks currently does not identify any single company as a direct competitor.

Key Differentiators

Fireblocks distinguishes itself through its network facilitating transactions between clients and its broad support for various blockchains and tokens.

Future Plans and Investment

The newly acquired funds will be used to double the company’s workforce, currently at 300, by the end of 2022.

Hiring will prioritize engineers and customer success professionals.

Geographic Expansion

The company intends to expand its presence into new markets, including Southeast Asia, Eastern Europe, and Africa, as regulatory conditions become more favorable.

Currently, 40% of its customers are based in the U.S., with approximately 30% in Europe and 25% in the Asia-Pacific region – the fastest-growing area since 2020.

Decentralized Finance (DeFi) Growth

Decentralized Finance (DeFi) has emerged as a significant growth driver for Fireblocks, representing 10% of its transaction volume in the past month.

Approximately 200 of its 800 clients are actively utilizing Fireblocks’ DeFi extensions to connect with various protocols.

New DeFi Custody Offerings

Fireblocks recently launched DeFi custody services through the Aave Arc protocol, a version of Aave designed for financial institutions with built-in anti-money laundering (AML) compliance features.

Strategic Consulting Services

The company also provides strategic consulting to clients seeking to develop their digital asset capabilities while leveraging the Fireblocks custody platform.

Fireblocks offers a blend of robust security and ease of deployment, allowing clients to maintain control while minimizing the technical resources required for operationalization.

This approach is particularly appealing to banks that prioritize control but may lack the internal expertise to independently manage custody solutions.