US-based asset transfer infrastructure operator Fireblocks has raised $550m in series E funding from investors including internet technology group Alphabet’s CapitalG unit, at a time when more traditional banks are looking into cryptocurrencies.
Investment group D1 Capital Partners and venture capital firm Spark Capital co-led the round, which included General Atlantic, Index Ventures, Mammoth, Altimeter Capital, Iconiq Strategic Partners, Canapi Ventures and Parafi Growth Fund.
Founded in 2018, Fireblocks operates a secure multi-party computation-equipped cryptocurrency platform that helps enterprise users make digital transactions quickly and safely. The round lifted its total funding to $1bn and its valuation to $8bn, making it the world’s most valuable digital asset network operator, it said.
The cash will be used to double the size of Fireblock’s 300-strong team by the end of this year, placing emphasis on engineers and customer service technicians. In addition, it plans to expand beyond the US, Europe and Asia-Pacific markets into Southeast Asia, Eastern Europe and Africa.
Fireblocks argues companies will increasingly adopt virtual currency in the coming year, adding that 55 of the top 100 financial institutions in the world already have dealt with the crypto and blockchain domain while almost all intend to hold digital assets moving forwards.
Michael Shaulov, CEO and co-founder of Fireblocks, said: “Everything that is happening at the cross-section of DeFi (decentralised finance), NFTs (non-fungible tokens), gaming, streaming and entertainment will be the biggest emerging use cases in the next year and a half.
“People need to think about infrastructure that is future-proof to layer more providers into the stack. You want to be agile, and consider whether the platform you are selecting offers the security, custody, and control over assets that can apply to these use cases.”
David Lawee, founder and general partner of CapitalG, added: “The crypto industry has reached an inflexion point with hyperscale levels of innovation and adoption. At CapitalG we are eager for consumers and institutions worldwide to reap the benefits of Web3’s tremendous potential.
“Fireblocks is serving an important role as the gatekeeper unlocking access to the digital asset economy for institutions of all types and sizes. We are excited to support them on their important journey.”
SCB 10X and DRW Venture Capital, subsidiaries of financial services group Siam Commercial Bank and principal trading firm DRW respectively, co-led a $310m series D round in July 2021 that reportedly valued Fireblocks at $2.2bn, investing alongside Sequoia Capital, Stripes, Spark Capital and Coatue Management.
Coatue, Ribbit Capital and Stripes had co-led the company’s $133m series C round four months before, featuring telecommunications firm Swisscom’s corporate venturing unit, Swisscom Ventures, as well as financial services firms BNY Mellon and SVB Financial Group, Paradigm, Galaxy Digital, Tenaya Capital and Cyberstarts.
Fieeblocks had closed a $30m series B round in late 2020 led by Paradigm and backed by Cyberstarts, Tenaya Capital, Digital Currency Group, Galaxy Digital and Cedar Hill Capital.
Swisscom Ventures had already participated in a $16m series A round for the company the previous year that also featured investment and financial services group Fidelity’s Eight Roads Ventures unit, Cyberstarts Ventures, Tenaya Capital and MState.
Digital payment processor PayPal agreed in March 2021 to purchase digital asset security technology developer Curv before cryptographic security software provider Unbound Security announced it would be acquired by digital currency exchange Coinbase last month, so Fireblocks does not have any direct competitors currently, Shaulov told TechCrunch.
Image courtesy of Fireblocks Inc.
