Charting the course: Fireblocks’ Vision for the Future of Digital Assets and Crypto Custody

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Fireblocks: A global platform providing Crypto Custody services

• Michael Shaulov, CEO and co-founder of Fireblocks, a company providing security services for digital assets (Crypto Custody), asset transfers, and related services.
  
  
•  Fireblocks currently works with about 1800 clients and is on track to transfer over $1 trillion per year. The company plans to expand its capabilities and service areas to meet customer demands, such as payment tools and Tokenization Engines.

Expanding Investor Demand Through Stablecoin Payment Service

• Shaulov cited a case study using Fireblocks to transfer USDT and USDC Stablecoins to areas with limited transfer services such as certain regions in Europe, Africa, the US, LATAM, and APAC.
  
  
• He emphasized the importance of token creation, with $150 billion of Stablecoins in circulation, people are looking to generate yields through tokenized traditional instruments like  Money Market Funds and Fixed Income instruments.
  
  
• The approval of Bitcoin ETFs by the US SEC positively impacts Bitcoin investment.It makes investing in Bitcoin more accessible to traditional capital market investors who previously faced regulatory compliance and knowledge gaps.

Case Study of a Global Investment Management Company and Bitcoin ETFs

• Shaulov mentioned BlackRock's investment in Bitcoin ETFs and their partnership with Securitize, a tokenization company, to launch the “BlackRock USD Institutional Digital Liquidity Fund” after the success of Bitcoin ETFs.
  
  
• Fireblocks sees growth in using Stablecoins for cross-border payments, with a rapid increase in payment providers using Stablecoins on their platform over the past two years, unaffected by the cut-off in the main crypto market.

• The main factors driving the popularity of Stablecoin payments are increased market players, fostering trust with traditional counterparties, and prominent regulators allowing these activities under different licenses, driving continuous network growth.
  
  
• However, regulatory clarity in the US remains an obstacle to adopting digital assets in financial institutions, potentially impacting banking relationships between Stablecoin issuers and on-ramps/off-ramps.

Developing Web3 Fireblocks to Expand Payment Demand

• Fireblocks continues to invest with major payment providers in cross-border transfer orchestration, treasury management and commercial services through Fireblocks' payment tools.
  
  
• In the Web3 space, Fireblocks is excited about using NFTs and token economies for innovative loyalty initiatives, collaborating with Flipkart on a Loyalty Program reaching 3.2 million users and generating significant GMV.
  
  
• Web3 technology development, such as new social networks, incentivizes users to value content creators' royalties and uses tickets for concerts, airlines and more.
  
  
• Web3 creators are shifting their focus from technology to user experience, adopting the "Web3 in the back, Web2 in the front" approach to provide the best experience and benefits to Web3 users.

Summary

Looking ahead, Shaulov is observing how blockchain technology can solve problems in the private credit space and offer new propositions differentiating between financial assets and Web3 user experiences. This is an interesting investment trend in technology for the future.

Learn more about Fireblocks on their website: Fireblocks