Fireblocks Raises $310M, Triples Valuation to $2.2B

Fireblocks Secures $310 Million in Series D Funding, Tripling Valuation

Fireblocks, a leading digital asset infrastructure provider, has successfully completed a Series D funding round, raising $310 million. This investment has resulted in a threefold increase in the company’s valuation, now reaching $2.2 billion in a span of just over five months.

Investment Details and Participants

The latest funding round was co-led by prominent venture capital firms Sequoia Capital, Stripes, and Spark Capital. Additional participation came from investors including Coatue, DRW VC, SCB 10X – the venture capital arm of Siam Commercial Bank – and Siam Commercial Bank itself.

Notably, Siam Commercial Bank joins Bank of New York Mellon and SVB Capital as the third global bank to invest directly in Fireblocks.

Rapid Growth and Financial Performance

In February, Fireblocks secured $133 million in Series C funding, achieving a valuation of $700 million. This recent financing brings the total capital raised by the company since its founding in 2018 to $489 million.

According to CEO and co-founder Michael Shaulov, the substantial valuation increase is directly linked to the company’s expanding customer base and accelerating Annual Recurring Revenue (ARR).

Since January, Fireblocks has experienced significant growth, increasing its customer base from 150 to approximately 500. Furthermore, its ARR has risen by an impressive 350% in 2021 compared to the previous year.

Shaulov anticipates continued growth, projecting a 500% increase in ARR by the end of the year, a forecast that has been revised upwards three times already.

Fireblocks’ Core Offering

Fireblocks provides a comprehensive platform designed to enable financial institutions to operate within the digital asset space. The company’s infrastructure supports the secure storage, transfer, and issuance of digital assets.

Institutional custody is a key component of Fireblocks’ services, and the platform has facilitated the secure transfer of over $1 trillion in digital assets to date.

Global Expansion and Customer Base

Launched out of stealth mode in June 2019, Fireblocks has rapidly expanded its global presence, establishing offices in the United Kingdom, Israel, Hong Kong, Singapore, France, and the DACH region.

The company currently serves over 500 financial institutions, encompassing both those actively involved in crypto and digital assets and those exploring entry into the market.

Its clientele includes global banks, cryptocurrency exchanges, lending desks, hedge funds, OTC desks, and prominent companies such as Revolut, BlockFi, Celsius, PrimeTrust, Galaxy Digital, Genesis Trading, crypto.com, and eToro.

Supporting Cryptocurrency Adoption by Traditional Banks

Fireblocks is actively collaborating with 70 banks that are exploring integration with the cryptocurrency ecosystem and building their infrastructure on the Fireblocks platform.

Siam Commercial Bank, for instance, is leveraging Fireblocks’ infrastructure to transition towards a blockchain-based banking model.

“Our platform delivers highly secure wallets for cryptocurrencies and digital assets, allowing institutions to safeguard their funds, as well as those of their customers, and benefit from security insurance,” Shaulov explained.

Issuance and Tokenization Capabilities

Fireblocks’ platform also facilitates the creation of asset-backed tokens through its issuance and tokenization capabilities.

The company manages all aspects of security, compliance, policies, and workflows, simplifying the complexities associated with implementing this new technology. Shaulov likened the platform to “Shopify for crypto.”

Industry Recognition and Future Outlook

Sequoia Partner Ravi Gupta expressed strong confidence in Fireblocks, describing it as “the leading back-end infrastructure for crypto products.”

“The team possesses the potential to construct a substantial and enduring business, serving both crypto-native companies, consumer fintech firms, and traditional financial institutions,” Gupta stated. “Their growth has been remarkable, and the quality of their product and customer feedback are exceptional.”

Expanding Use Cases Beyond Traditional Finance

Fireblocks is witnessing growing interest from businesses outside the traditional fintech and finance sectors, including e-commerce companies seeking to create NFTs linked to their merchandise.

The Fireblocks platform is designed to broaden the application of digital assets beyond Bitcoin, encompassing areas such as payments, gaming, NFTs, and digital securities, effectively enabling any business to operate within the digital asset landscape.

White-Labeling and Custody Solutions

Fireblocks’ technology can be white-labeled for cryptocurrency custody offerings, allowing both new and established financial institutions to implement direct custody solutions independently, without relying on third-party providers.

Commitment to Independence

Shaulov emphasized Fireblocks’ commitment to maintaining its independence, particularly in light of recent consolidation trends within the industry. He cited the acquisitions of Curv by PayPal and BitGo by Galaxy Digital Holdings Ltd. as examples.

“Consolidation can be detrimental to clients,” he explained. “It is crucial for us to remain independent, and this funding round supports that objective.”

Strategic Allocation of Funds

The newly acquired funds will be allocated to bolster Fireblocks’ engineering and customer success teams, as well as to expand its geographical reach, with a particular focus on the Asia-Pacific region.

Gupta of Sequoia reiterated Fireblocks’ strengths, highlighting its secure and flexible platform, world-class multiparty computation technology, and robust controls for product teams.