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Fireblocks acquires BlockFold

Friday 29 September 2023 13:54 CET | News

US-based cryptocurrency custody company Fireblocks has bought BlockFold, a smart contract development and consulting company, to enrich its tokenization capabilities.

 

Fireblocks' acquisition of BlockFold enhances its tokenization services, offering clients a comprehensive package including advisory, customisation, orchestration, and distribution via the Fireblocks Network. This move aligns with the modernisation of banking and financial infrastructures, fostering competition. The cryptocurrency custody company will also continue collaborating with partners like Bitbond, Securitize, and Tokeny to create an open tokenization marketplace catering to specific customer needs.

Fireblocks has bought BlockFold to enrich its tokenization capabilities.

Tokenization market growth and Fireblocks' response

BCG projects that the tokenization of financial assets on the blockchain will grow into a USD 16 trillion market by 2030 and will represent 10% of all financial assets. Against this backdrop, Fireblocks has seen rapid growth in demand from customers, with a 350% increase in tokenization projects between 2022 and 2023, and 75% of tier-1 financial institutions exploring tokenization via its platform.

FireBlocks officials highlight BlockFold's crucial market expertise, catering to sophisticated banking clients. Their shared understanding enables seamless integration, speeding up tokenization projects and blockchain asset introductions. This collaboration fosters innovation and adapts to market changes.

Pioneering stablecoins and tokenized bonds on the blockchain

Since its first bank-issued stablecoin in March 2022, Fireblocks has delivered more than 10 stablecoin projects and is in active conversations with more than 25 banks who are exploring the creation of bank-issued stablecoins or tokenized deposits. By 2026, the company expects the value of tokenized money on the blockchain to reach USD 450 billion.

In May 2023, Fireblocks enabled the Tel Aviv Stock Exchange (TASE) and the Israeli Ministry of Finance to tokenize and settle a government bond following a live auction with 5 domestic and 7 global banks. As the sole issuers of Israeli government bonds, both parties now have a credible path to tokenize Israel's government debt market, which is worth USD 15 billion annually. Fireblocks expects the value of tokenized bonds on the blockchain to reach USD 400 billion within the next three years, targeted to hit USD 1 trillion by 2028.

Officials from TASE discussed how Fireblocks' acquisition of BlockFold strengthens tokenization capabilities. This bridges the gap between traditional and decentralised finance, allowing institutions like theirs to build robust digital asset ecosystems. TASE's strategic initiatives, including Project Eden, benefit from this partnership, enhancing traditional markets' accessibility, diversity, and efficiency. They look forward to further develop digital asset products and services.

The integration of BlockFold

BlockFold aids significant financial institutions in diverse tokenization projects, customising solutions for money, assets, and decentralised markets. Key clients include prestigious entities like Bank of International Settlements Innovation Hub, Swiss National Bank, Banque de France, Singapore's Ministry of Finance, Tel Aviv Stock Exchange, and National Australia Bank, several of which are Fireblocks' clients too. BlockFold's expertise enriches Fireblocks' capacity to provide personalised solutions and integrate tokenization into large financial institutions' existing systems. This partnership seeks to enhance the value in both tokenization and decentralised finance.

The BlockFold team is integrating into Fireblocks, with the engineering team joining the Web3 engineering staff and the business consulting team joining the Financial Markets group.


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Keywords: tokenization, stablecoin, blockchain, digital assets, growth markets
Categories: DeFi & Crypto & Web3
Companies: BlockFold, Fireblocks
Countries: World
This article is part of category

DeFi & Crypto & Web3

BlockFold

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Fireblocks

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