On May 18, 2021, Fireblocks revealed that it had managed to facilitate the secure storage and transfer of $637 billion in digital assets since its launch in 2019. The announcement also revealed that the company had seen a 2023% uptick in volume since last year.
Reasons For The Surge
A major reason for this rise in volume was the rising demand from consumer-facing apps which are launching new services. Additionally, some of these apps had been moving their operations to the Fireblocks infrastructure to cut operational costs and improve efficiency.
From May 2020 to May 2021, the number of Ethereum wallets grew from 72.7 million to around 115.3 million. Consequently, the cost of managing thousands of customer wallets while processing millions of transactions daily has increased tremendously.
Thrilled to announce that Fireblocks has crossed $700 billion in total #digitalassets transferred! Here’s where we are in comparison to some of the biggest names in the financial industry. #crypto #cryptocurrency #blockchain #cryptonews #fintechs https://t.co/KPhyZfgJTi pic.twitter.com/p5IWQbsixb
— Fireblocks (@FireblocksHQ) May 18, 2021
According to the recent Twitter post from Fireblocks, they have now surpassed Coinbase, BitGo Trust, Venmo, and Square in TAT ( total assets transferred ). These metrics are based on total transfer volume in digital assets between 2019 and 2021.
Businesses can utilize Fireblocks’ blockchain agnostic MPC-based technology to cut ETH management fees by up to 90%. The MPC-based technologies offered by Fireblocks are at par with multi-sig wallets, which was the previous standard used by institutions to manage crypto. These technologies offer improvements when it comes to scalability, safety, and the ability to support more blockchain assets.
Who Is Fireblocks?
Fireblocks is an enterprise-grade platform that delivers secure infrastructure for the transfer, storage, and issuance of digital assets. The company offers its services to banks, fintechs, exchanges, OTCs, liquidity providers, and hedge funds. Today, its services are used by over 250 financial institutions globally.
Companies Benefiting From Fireblocks’ Technology
One of the companies that have reaped huge benefits from using Fireblocks’ technology is Revolut. The company reported that it had integrated 300,000 new customers after integrating with Fireblocks. Of those, 100K were added in the first six days of 2021.
Another company that has reaped big from working with Fireblocks is the Celsius Network, which was one of Fireblocks’ earliest customers. In April, Celsius Network announced that its user base had grown to 500K with over $10 billion worth of digital assets under their management.
By offering institutions an easy-to-use platform, and a robust API, Fireblocks eliminated the complexity that comes with working in the digital assets space. At the same time, it empowers the largest lending desks, liquidity providers, OTCs, and DeFi applications. They benefit from robust insurance, regulatory compliance, and enhanced security to create and scale their products in the digital assets space.
Speaking on their Fireblocks integration, the co-founder and CTO of CoinLoan, Max Sapelov, said that:
“Thanks to Fireblocks, we significantly reduced blockchain fees for Ether and ERC-20 token transfers. MPC technology eliminates the multi-sig smart contract that makes transactions consume additional gas.”
According to Michael Shaulov, the co-founder, and CEO of Fireblocks, retail platforms had seen the biggest surge in operational costs as more Ethereum wallets were created. Shaulov said that:
“We expect our volume to double before the end of the year as digital asset businesses continue to migrate away from multi-sig wallet technology and begin introducing more offerings for the growing crypto retail market.”
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