Blockchain unicorn Fireblocks has acquired Australia-based BlockFold, a smart contract development and consulting firm specializing in advanced tokenization projects for financial institutions. The deal is estimated at $10 million.

The acquisition of BlockFold will enable Fireblocks to provide clients with a comprehensive service layer. This layer includes advisory, token customization, orchestration, and distribution through the Fireblocks Network.

Increasing Tokenization Projects

Fireblocks has witnessed a significant surge in customer demand, with a remarkable 350% increase in tokenization projects between 2022 and 2023. 75% of tier-1 financial institutions actively explore tokenization via Fireblocks' platform.

Michael Shaulov, Co-founder and CEO at Fireblocks, expressed his excitement about the acquisition and its potential to serve tier-1 financial institutions. Shaulov stated that BlockFold's expertise will allow them to quickly and seamlessly bring tokenization projects into production and introduce new assets onto the blockchain.

"BlockFold's expertise fills an important gap in the market, tailoring bespoke solutions for some of our most sophisticated customers and prospects in the banking and financial institutions space," said Shaulov, as quoted by Bloomberg.

Since the successful launch of their first bank-issued stablecoin for ANZ in March 2022, Fireblocks has delivered over 10 stablecoin projects, according to Calcalis Tech.

Currently, they are conversing with more than 25 banks worldwide interested in creating their bank-issued stablecoins or tokenized deposits. Fireblocks expects the total value of tokenized money on the blockchain to reach $450 billion within the next three years.

Tokenizing Government Bonds

In May 2023, Fireblocks made headlines by enabling the Tel Aviv Stock Exchange and the Israeli Ministry of Finance to tokenize and settle a government bond following a live auction. This achievement involved the collaboration of 5 domestic and 7 global banks.

As a result, both parties now have a credible path to tokenize Israel's government debt market, which amounts to an annual worth of $15 billion. Fireblocks envisions the value of tokenized bonds on the blockchain to reach $400 billion within the next three years, with a long-term target of $1 trillion by 2028.

Many countries, kike South Korea, have opened institutional markets to enable the trading of blockchain-based security tokens,

BlockFold and Major Institutional Clients

BlockFold's prestigious clientele includes renowned institutions like the Bank of International Settlements, Swiss National Bank, and Banque de France. Singapore's Ministry of Finance also relies on BlockFold's expertise.

The BlockFold engineering team is integrating into Fireblocks as part of the acquisition. Francois Schonken, BlockFold's co-founder, has become Senior Director and Tokenization Business Lead at Fireblocks. Additionally, Terence Siganakis, also a co-founder of BlockFold, has been appointed Senior Director and Head of Tokenization Products.

Photo: Blockfold Newsroom