Crypto firm Fireblocks buys payment technology platform for $100 million

NEW YORK, Feb 16 (Reuters) – Fireblocks, a cryptocurrency infrastructure provider, has acquired First Digital, a stablecoin and digital asset payment technology platform.

Fireblocks and First Digital said Wednesday they reached a cash and stock deal, without disclosing financial details, but two sources familiar with the deal said the purchase price was $100 million.

Fireblocks raised $550 million from institutional investors last month, bringing its valuation to $8 billion. Read more

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The acquisition of First Digital will expand Fireblocks’ existing payment capabilities, enabling payment service providers (PSPs) to accept crypto payments.

PSPs and large merchants are eager to meet customer demand for crypto and digital currency payments, but offering these services often involves challenges such as high wallet integration costs and manual control of the fight against money laundering.

Fireblocks said the addition of First Digital will enhance the solutions it already offers to address these issues.

“What First Digital brings is a great product and extensive payments leadership and expertise,” Fireblocks chief executive Michael Shaulov told Reuters in a phone interview. “Specifically, the product they are bringing to market, I think, is very applicable to the mass market.”

First Digital will also launch a business unit within Fireblocks that is “purely payments-focused and enables our customers to accept and payout using multiple types of cryptocurrencies,” Shaulov said.

First Digital’s payment capabilities include stablecoins, cryptocurrencies pegged to fiat currency like the US dollar.

Digital’s first chief executive, Ran Goldi, said the deal was a natural fit, given the companies had been partners for two years. He added that over the past six months, First Digital “has had a lot of interest from companies that three years ago were saying we were ahead of our time.”

Through First Digital, merchants working with supported payment service providers can simply add an option to accept crypto payments, and funds are settled in local currency or crypto.

All First Digital employees will be absorbed into Fireblocks as part of the deal.

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Reporting by Gertrude Chavez-Dreyfuss; edited by Jane Wardell

Our standards: The Thomson Reuters Trust Principles.

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