As part of a larger push to expand its payment capabilities for the cryptocurrency sector, Fireblocks has completed the acquisition of First Digital, a stablecoin and digital asset payment platform in a $100M deal.
The acquisition provides Fireblocks with more resources to help payment service providers buy cryptocurrencies and accept payments in digital assets, possibly expanding the scope of the new technology’s applications.
Merchants today are keen to incorporate crypto payments, according to Fireblocks, but high wallet integration costs and manual Know Your Customer and Anti-Money Laundering screening are preventing adoption.
Fireblocks wants to increase support for business-to-business, business-to-consumer, and cross-border payment alternatives via USD Coin (USDC), Celo, and other stablecoins as soon as this spring, thanks to the acquisition of First Digital.
These services will be offered through a “package of tools via APIs that will give a straightforward approach to handle transactions, treasury management, and compliance,” according to Fireblocks CEO Michael Shaulov.
About Fireblocks and First Digital
Despite the fact that Fireblocks has only been around since 2017, the company has plenty of cash after raising $799 million in numerous rounds of funding. The company raised $550 million in Series E fundraising in January, bringing its total valuation to $8 billion.
First Digital, which was launched in 2017, has focused on developing a stablecoin payment infrastructure and enabling merchants to accept cryptocurrency payments.
“We’ve worked with First on several payment initiatives and seen their work first hand,” Shaulov said, describing First Digital as a “leader in offering API-based stablecoin payment solutions.”
Efforts to normalize crypto payments are now underway, while progress has been hampered by significant regulatory constraints. Meta, formerly Facebook, recently stated that its Diem stablecoin project has been abandoned. Meanwhile, PayPal, the online payment provider, has announced that it is investigating the adoption of a stablecoin.