Crypto firm Fireblocks raises $550 million, company valued at $8 billion


FILE PHOTO: A representation of virtual currency Bitcoin is seen in front of a stock graph in this illustration taken January 8, 2021. REUTERS/Dado Ruvic//File Photo

NEW YORK (Reuters) - Fireblocks, a digital asset infrastructure provider, said on Thursday it raised $550 million from institutional investors, making it one of the largest financing rounds in the cryptocurrency sector in the last few years.

The latest investment valued the company at $8 billion.

The funding was led by D1 Capital Partners and Spark Capital, with participation from investors such as General Atlantic, Altimeter, Index Ventures and CapitalG, Alphabet's growth fund, Fireblocks said in a statement.

All firms confirmed their investment in emails to Reuters.

"We're going to use the capital for further investment into new use cases in the digital asset space such as decentralized finance, non-fungible tokens, gaming, entertainment, and music," Michael Shaulov, Fireblocks chief executive officer told Reuters in a phone interview.

Decentralized finance refers to that segment of the market which facilitates crypto-denominated financial transactions outside of traditional banks.

Non-fungible tokens, on the other hand, are unique digital assets that cannot be replaced.

Fireblocks works with companies and financial institution that want to build cryptocurrencies and digital assets, providing the infrastructure - including wallets - to make the digital assets safe and secure.

Shaulov said his company's goal is to make every business a crypto enterprise.

U.S.-based Fireblocks cited a recent Gartner report which showed about one-fifth of major organizations will utilize digital currencies by 2024, suggesting the adoption of crypto by large corporations will accelerate in 2022 and beyond.

Shaulov said Fireblocks has a network which connects its members to the digital currency capital markets and enables instant settlements of payments and fund transfers.

He said Fireblocks aims to facilitate fund transfers in "a secure way because a lot of the hacks are not happening when you're storing it, but when you're moving or selling it."

An estimated 15% of daily crypto transaction volume as been secured through Fireblock's infrastructure, according to Dan Sundheim, founder of New York-based D1, one of the lead investors in the latest funding round.

(Reporting by Gertrude Chavez-Dreyfuss; Editing by Lincoln Feast.)

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

   

Next In Tech News

India's top crypto app CoinSwitch calls for regulatory 'peace, certainty'
Using smartphones to screen for disease
Lawsuit: Tesla autopilot feature accelerated on its own, causing crash
Online romance scams bedevil law enforcement
Power outage: Could a solar storm switch off the world’s technology?
Researchers: Patients should get robotic surgery for quicker recovery
Apple aims to use VR to beat motion sickness in robot cars
SG victims of spoofed work emails suffer losses of over S$70mil, 149 victims in 2022
Victims in SG lose S$466,000 to scammers impersonating ecommerce platform staff
Spotify translating more and more podcasts into multiple languages

Others Also Read