Crypto infra provider Fireblocks buys First Digital for $100 mln

abdelaziz Fathi

Digital asset custody platform Fireblocks has made its first ever acquisition with the buyout of crypto payments technology provider First Digital.

The financial details weren’t shared, but two sources told “Reuters” that the price tag of this cash and equity deal was $100 million.

Michael Shaulov, CEO and Co-founder of Fireblocks, said the takeover will expand their existing payment capabilities and enable payment service providers to accept crypto payments. First Digital gives merchants a fiat onramp to conduct and settle crypto transactions, a grey area of business where a gauntlet of KYC requirements and other regulations kick in.

“What First Digital brings is an awesome product and extensive leadership and know-how in the payments domain. Specifically the product they’re bringing to the market, I think is very applicable to the mass market. We’re thrilled to welcome First Digital to the Fireblocks family as we accelerate our expansion plans to help every business become a crypto business. We’re pushing ‘fast forward’ to give PSPs the suite of tools they need to begin accepting crypto payments,” added Shaulov.

The Israeli-based startup, which has been working with Facebook-backed Diem Association for two years, combines crypto payment processing with fraud prevention technology. It also enables merchants to accept diverse payment methods, including credit card deposits and purchases, with zero exposure to chargeback risk.

Fireblocks lands $8 billion valuation

By embedding First Digital into the Fireblocks tech stack, the combined offering would broaden support for B2C, B2B, cross-border, and other forms of payment via USDC and Celo. The company plans to add other stablecoins and cryptocurrencies as early as Spring 2022. First Digital will also launch a business unit within Fireblocks to create a suite of tools that integrates digital asset treasury operations with day-to-day financial activities.

“It is amazing to see what the entire Fireblocks team has built and accomplished in such a short period of time. This is an exciting opportunity for the First Digital team based on a proven, successful partnership with Fireblocks. We believe that payments should be a core functionality for all fintech apps, and via Fireblocks’ platform, we will make it available to the world at scale,” said Ran Goldi, chief executive of First Digital.

The news comes hot on the heels of Fireblocks raising $550 million in a Series E funding round at an $8 billion valuation. The fresh capital injection makes Fireblocks the highest-valued digital asset infrastructure provider in the world.

The latest funding brings the total capital raised by Fireblocks from day one to $1 billion in total. 2021 was a remarkable year of funding by the Israeli cryptocurrency security company. The New York-based startup, which develops a secure platform for the transfer of digital assets, raised $310 million in July 2021 at a $2 billion. That came a mere four months after it raised $133 million in Series C, which itself was announced four months after a $30 million Series B.

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