Blockchain unicorn Fireblocks has made a strategic move by acquiring Australia-based BlockFold, a smart contract development and consulting firm specializing in advanced tokenization projects for financial institutions.
This acquisition is estimated to be valued at $10 million. It is poised to enhance Fireblocks' ability to offer clients a comprehensive service layer that encompasses advisory services, token customization, orchestration, and distribution through the Fireblocks Network.
Expanding Fireblocks' Service Layer with BlockFold Acquisition
The decision to acquire BlockFold comes on the heels of rapid growth in demand for tokenization projects witnessed by Fireblocks. The company reported an impressive increase of 350% in tokenization projects between 2022 and 2023. Moreover, an astounding 75% of tier-1 financial institutions have been exploring tokenization through Fireblocks' platform.
Commenting on this development, Michael Shaulov, the Co-Founder and CEO at Fireblocks, noted: "BlockFold's expertise fills an important gap in the market, tailoring bespoke solutions for some of our most sophisticated customers and prospects in the banking and financial institutions space."
He added: "Bringing BlockFold's expertise in-house means that we can better serve tier-1 financial institutions to quickly and seamlessly bring tokenization projects into production and new assets onto the blockchain. In addition, we can continue to innovate and expand our offerings and tailor our approaches as the market continues to mature and evolve."
Fireblocks has taken the initiative to tokenize various financial assets. Since introducing the first bank-issued stablecoin for ANZ in March 2022, Fireblocks has successfully delivered over 10 stablecoin projects.
Moreover, it is actively engaged in exploring the creation of bank-issued stablecoins or tokenized deposits with more than 25 global banks. Within the next three years, Fireblocks envisions the value of tokenized money on the blockchain to reach an impressive $450 billion.
Fireblocks Sets Ambitious Targets for Tokenized Bond Values
From May 2023, Fireblocks enabled the Tel Aviv Stock Exchange and the Israeli Ministry of Finance to tokenize and settle a government bond after a live auction involving five domestic banks and seven global banks. As the sole issuers of Israeli government bonds, both parties now have a credible path to tokenize Israel's government debt market, valued at $15 billion annually.
Fireblocks has set ambitious goals. The firm is targetting the value of tokenized bonds on the blockchain to reach $400 billion within the next three years. It assumes these targets with a long-term vision of hitting $1 trillion by 2028.
BlockFold's esteemed clientele, which are also existing Fireblocks customers, include major institutions such as the Bank of International Settlements, Swiss National Bank, Banque de France, Singapore's Ministry of Finance, Tel Aviv Stock Exchange, National Australia Bank, and ANZ Bank.
BlockFold Team Integration Strengthens Fireblocks
The BlockFold team has joined forces with Fireblocks as a component of the integration process. Additionally, the engineering team has merged to be part of the Web3 engineering staff. The business consulting team is fusing with the Financial Markets group. Francois Schonken, a Co-Founder, has been appointed to Senior Director and Tokenization Business Lead at Fireblocks. Further, Terence Siganakis, another Co-Founder, will take on the role of Senior Director and Head of Tokenization Products.
This acquisition is expected to solidify Fireblocks' position in the blockchain and tokenization space. It will enable it to provide a broader range of services to its client base in the financial industry.
The world of blockchain and tokenization is continuing to evolve. Fireblocks' strategic acquisition of BlockFold is positioning itself to navigate the changing landscape and deliver innovative solutions to its clients. Market participants and financial institutions will be closely monitoring Fireblocks' future developments as the company plays a role in the digital transformation of the financial sector.
