This is Fireblocks’ first-ever acquisition
Fireblocks aims to enhance its payment offerings to acquirers and payment service providers
Crypto infrastructure provider Fireblocks revealed yesterday that it had completed a deal to acquire Israeli crypto payments processor First Digital Assets Group (First DAG). The acquisition of the digital asset payments technology platform is the first-ever Fireblocks has completed. First DAG employees absorbed into the firm as part of the agreement
Though specifics were not revealed at the time of the announcement, Fireblocks said that the deal was completed in cash and stocks. Two sources familiar with the matter have indicated that the price could be in the region of $100 million.
Fireblocks plans to expand its current payment offering to enable payment service providers (PSPs) settle payments and complete pay-outs in cryptocurrencies.
The advancement of the payments sector has made it crucial for both PSPs and merchants serving large-scale customer bases to allow payments in digital currencies. More often than not, these entities face barriers, including the high costs of integrating crypto wallets and the need to implement anti-money laundering monitoring manually.
Reinforced solutions for a better user experience
Fireblocks said its integration with First Digital would mean scaled support for B2B, B2C, trans-border, and other payment methods. The plan is to settle these transactions via digital coins and stablecoins, including USDC and Celo. Implementation is expected to come as soon as spring.
“We’re thrilled to welcome First Digital to the Fireblocks family as we accelerate our expansion plans to help every business become a crypto business. We’re pushing ‘fast forward’ to give PSPs the suite of tools they need to begin accepting crypto payments,” Fireblocks CEO and founder Michael Shaulov said.
Shaulov also told Reuters that First DAG would create a unit exclusive to payment initiatives within Fireblocks. The Fireblocks executive hopes that this will help reinforce the institution’s ability to accept and remit customer transactions in various crypto options.
CEO of First DAG Ran Goldi, who has joined Fireblocks as the vice president for payments, said the deal was a perfect fit for the two firms as they have collaborated to execute initiatives in the past.
“This is an exciting opportunity for the First Digital team based on a proven, successful partnership with Fireblocks. We believe that payments should be a core functionality for all fintech apps, and via Fireblocks’ platform, we will make it available to the world at scale,” Goldi was quoted.