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.
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 hefty wallet integration fees and laborious processes are deterring them. Adoption hampered by Know Your Customer and Anti-Money Laundering screening.
Fireblocks wants to increase support for business-to-business, business-to-consumer. As well as cross-border payment alternatives via USD Coin (USDC), Celo. In addition to other stablecoins as early as this spring, thanks to the acquisition of First Digital. These services will be supplied via 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.
The terms of the agreement were not available to the public. However, Fireblocks said to have paid $100 million for First Digital.
Developing stablecoin payment infrastructure
Despite the fact that Fireblocks has only been around since 2017, the company has amassed $799 million in funding over various rounds. The company raised $550 million in Series E fundraising in January, bringing its total value to $8 billion.
First Digital, which was founded in 2017, has focused on developing stablecoin payment infrastructure. As well as enabling merchants to accept cryptocurrency payments. “We’ve worked with First on various payment projects and seen their work first hand,” Shaulov said. Describing the company as a “leader in providing API-based stablecoin payment solutions.”
Efforts to normalise crypto payments are now underway, while progress has faced many obstacles by significant regulatory constraints. Meta, formerly Facebook, recently stated that it abandoned its Diem stablecoin project. Meanwhile, PayPal, the online payment provider, has announced that it is investigating the adoption of a stablecoin.