Blockchain unicorn Fireblocks has completed the acquisition of Australian tokenization startup BlockFold for an estimated $10 million. This move is aimed at bolstering Fireblocks' offerings to financial institutions by incorporating BlockFold's expertise in smart contract development and advanced tokenization projects. With a growing demand for tokenization services, Fireblocks has witnessed a 350 per cent increase in tokenization projects between 2022 and 2023, and approximately 75 per cent of tier-1 financial institutions are exploring tokenization through Fireblocks' platform.
BlockFold, based in Melbourne, specialises in providing tailored solutions for financial institutions in the banking sector. This strategic acquisition will enable Fireblocks to offer a comprehensive service layer encompassing advisory, token customization, orchestration, and distribution via the Fireblocks Network. It will also foster closer collaboration with Fireblocks' existing tokenization partners such as Bitbond, Securitize, and Tokeny.
Michael Shaulov, Co-founder and CEO of Fireblocks, emphasised the importance of BlockFold's expertise in filling a crucial gap in the market. By bringing BlockFold's capabilities in-house, Fireblocks aims to better serve tier-1 financial institutions, facilitating the rapid deployment of tokenization projects and the integration of new assets onto the blockchain. This move also positions Fireblocks to adapt and innovate as the market continues to evolve.
Fireblocks has been actively involved in advancing the adoption of blockchain technology in the financial sector. Since launching the first bank-issued stablecoin for ANZ in March 2022, Fireblocks has been responsible for over 10 stablecoin projects and is in discussions with more than 25 banks globally regarding the creation of bank-issued stablecoins or tokenized deposits. The company expects the value of tokenized assets on the blockchain to reach $450 billion within the next three years.
Furthermore, Fireblocks made significant strides in May 2023 when it enabled the Tel Aviv Stock Exchange and the Israeli Ministry of Finance to tokenize and settle a government bond after a live auction involving domestic and global banks. As the sole issuers of Israeli government bonds, these parties now have a clear path to tokenize Israel's government debt market, which is valued at $15 billion annually. Fireblocks anticipates that the value of tokenized bonds on the blockchain will reach $400 billion within the next three years, with a target of reaching $1 trillion by 2028.
BlockFold's client portfolio includes prominent institutions like 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, many of which are already Fireblocks customers.
As part of the acquisition, the BlockFold team is being integrated into Fireblocks. The engineering team will join the Web3 engineering staff, while the business consulting team will become part of the Financial Markets group. Francois Schonken, co-founder of BlockFold, has been appointed Senior Director, Tokenization Business Lead at Fireblocks, and Terence Siganakis, co-founder of BlockFold, will serve as Senior Director, Head of Tokenization Products.
This acquisition represents a strategic move by Fireblocks to further solidify its position in the blockchain and tokenization space. With growing interest from financial institutions and a significant increase in tokenization projects, Fireblocks is well-positioned to meet the evolving needs of the market and continue its rapid expansion.
Xu Lin
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