Fireblocks, another digital asset company in the region, has purchased Israeli crypto payment platform “First Digital” for an estimated $100 million. While previously providing blockchain infrastructure and crypto custody services, the acquisition will now expand Fireblocks’ crypto asset payment service offerings.
Accepting payments with Fireblocks
First Digital is a company that provides API-based payment solutions with stablecoins to institutional clients. It was founded in 2017 by Yariv Gilat and Ran Goldi, and has since expanded its leadership to include CTO Daniel Prinz and COO Guy Hadar.
Now, all 16 members of that company will join Fireblocks, adding to the latter’s existing roster of 300 employees. The acquisition appears to comprise the bulk of Fireblocks’ $100 million raised for side deals last month. This was part of a larger $550 million raise that brought the company’s total valuation to $8 billion.
As reported by Calcanist, the expansion of Fireblocks will allow payment service providers (PSPs) to make and accept payments in cryptocurrencies. While many of these providers show interest in implementing these payment options, they often involve various complications around wallet integration, KYC/AML screening, and emerging blockchain technology, all of which serve as barriers to entry.
Now, Fireblocks plans to introduce cross-border payments, B2C, B2B, and other payments using stablecoins, including USDC and Celo, possibly by spring 2022.
Goldi, CEO of First Digital, explained that the company was forced to downsize by 90% after the crypto winter of 2018. However, it survived by diversifying beyond the cryptocurrency trading sector and into payments, raising more of USD 20 million to date.
“We’ve worked with First from the beginning and have been doing so closely since they underwent their switch,” said Michael Shaulov, CEO of Fireblocks. “Like us, they don’t want to become a financial institution, but rather integrate their technology with our hundreds of customers.”
Shaulov said they are looking into other acquisitions, but don’t have “imminent” organizations in mind. For now, they are focused on integrating the First Digital team.
Mass growth from fire blocks
Fireblocks has amassed billions of dollars in funding since July of last year as it expanded its operations into new areas of crypto. With the money from last month’s raise, he now plans to invest in the “cross section of DeFi, NFT, gaming, streaming and entertainment.”
The company now manages more than $2 trillion in digital assets and reportedly serves more than 800 clients. Even former SEC Chairman Jay Clayton works for Fireblocks as a regulatory advisor.
SPECIAL OFFER (Sponsored)
Binance Free $100 (Exclusive) – Use this link to sign up to receive $100 free and 10% off Binance Futures first month fees (terms).
PrimeXBT Special Offer: Use this link to sign up and enter the code POTATO50 to receive up to $7,000 on your deposits.
This post First Digital Acquired by Crypto Custodian Fireblocks for $100M
was published first on https://cryptopotato.com/first-digital-acquired-by-crypto-custodian-fireblocks-for-100-million/
