These additions come in the context of a surge in the decentralised finance (DeFi) sector, marked by increased retail adoption and institutional capital allocation. According to the official announcement, DeFi's total value locked (TVL) has surpassed USD 100 billion, while Fireblocks has noted a 75% rise in institutional DeFi volume in 2024, nearing USD 4.5 billion in monthly volume.
However, this growth has attracted sophisticated threat actors who have exploited vulnerabilities, resulting in the loss of over USD 500 million from wallets due to phishing websites, dApp takeovers, and supply chain attacks in the early months of 2024.
The complexity of DeFi transactions poses challenges for identifying security risks and understanding transaction impacts. Therefore, Fireblocks has launched dApp Protection and Transaction Simulation in response. DApp Protection offers real-time threat detection alerts to prevent interactions with suspicious smart contracts, phishing websites and compromised dApps. It identifies threats such as imitative URLs and suspicious registrars, providing proactive security measures.
Transaction Simulation addresses the challenge of understanding complex contract calls by translating them into human-readable messages. This feature allows users to preview the impact on their wallet balance before signing, enhancing confidence in transaction authorization. These new security features aim to empower institutional firms with real-time threat detection and clear insights into transaction impacts, mitigating the risks associated with DeFi's technical and opaque characteristics.
In January 2024, WSPN announced a partnership with Fireblocks to enhance global digital payments adoption and support financial inclusion. This collaboration aimed to combine WSPN’s digital transaction expertise with Fireblocks’ enterprise-grade digital assets infrastructure.
The partnership allowed WSPN to leverage Fireblocks’ Tokenisation Studio to launch a USD-backed stablecoin, named the WUSD (Worldwide USD), while using Fireblocks’ Wallet-as-a-Service for secure custody and asset transfers. By integrating Fireblocks’ technology and solutions, WSPN aimed to optimise its payment ecosystem, providing partners and clients with enhanced security and efficiency in managing digital assets. The company seeked to meet evolving market needs while ensuring compliance with local industry regulations.
In September 2023, Fireblocks acquired BlockFold, a smart contract development and consulting company, to improve its tokenization capabilities. The move aligned with the modernisation of banking and financial infrastructures, fostering competition.
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