Blockchain security tech startup Fireblocks reaches a new milestone, surpasses half a trillion ($600 billion) in digital assets transferred
It wasn’t long ago when Fireblocks emerged from stealth to securely transition digital assets to the blockchain. The startup provides an all-in-one platform to store, transfer, and issue digital assets across your entire ecosystem. We wrote about FireBlocks back in 2019 after the New York-based tech startup launched out of stealth with $16 million in Series A funding. A lot has changed since our last story. Fireblocks now moves at least $2.5 billion in crypto assets every month.
Today, Fireblocks announced it has secured the storage and transfer of more than half a trillion ($637 billion) in digital assets since launching in 2019. The 2023% uptick in transaction volume since last year stems from a surge in demand across large consumer-facing apps that are launching new services or moving to the Fireblocks infrastructure to significantly reduce operational costs and inefficiencies.
With the creation of new Ethereum wallets increasing from 72.7 million to almost 115.3 million from May 2020 to May 2021, the cost of managing thousands of customer wallets and processing millions of transactions on a daily basis has skyrocketed.
Utilizing Fireblocks’ blockchain agnostic MPC-based technology, these retail-facing businesses have been able to realize up to 90% in cost savings on ETH management fees. Comparable to multi-sig wallets, a previous standard used by institutions to manage cryptocurrencies, MPC-based technologies can offer new advantages when it comes to safety, scalability, and the ability to support more blockchain assets.
Founded in 2018 by Michael Shaulov and Pavel Berengoltz, whose mobile security company Lacoon Mobile Security was acquired by Check Point, and Idan Ofrat, the VP R&D of C4 Security which was acquired by Elbit Systems, Fireblocks aims to eliminate the root cause of digital asset hacks and scams. Fireblocks’ platform protects digital assets in transit, focusing on protecting the transmission of customers’ digital assets between exchanges, counter brokers, hot wallets and cold stores and keep them readily available using patent-pending chip isolation security and MPC technology.
“Retail platforms have seen the steepest increase in operational costs associated with the exponential creation of new wallet addresses and transaction fees on the ETH network,” said Michael Shaulov, CEO and Co-Founder of Fireblocks. “We expect our volume to double before the end of the year as digital asset businesses continue to migrate away from multi-sig wallet technology and begin introducing more offerings for the growing crypto retail market.”
Two months after integrating with Fireblocks, Revolut reported 300,000 new cryptocurrency customers, adding 100,000 of them in the first six days of this year. Celsius Network, one of Fireblocks’ earliest customers, also announced in April it boosted its growth to 500,000 new users with over $10 billion worth of digital assets under management, signaling the continued growth of interest amongst consumers in the digital asset space.
“Thanks to Fireblocks, we significantly reduced blockchain fees for Ether and ERC-20 token transfers. MPC technology eliminates the multi-sig smart contract that makes transactions consume additional gas,” said Max Sapelov, Co-Founder & CTO, CoinLoan.
By providing institutions with an easy-to-use platform and robust API, Fireblocks removes the complexity of working with digital assets while empowering the largest liquidity providers, lending desks, OTCs, and DeFi applications with top-of-the-line insurance, compliance, and security measures to frictionlessly build and scale digital asset products.