Fireblocks Acquires BlockFold To Forge A Tokenization Juggernaut

Crypto custody company Fireblocks on Friday announced its acquisition of BlockFold, a smart contract development and consulting firm, in a deal valued at $10 million that seeks to amplify the former's' capabilities in the realm of tokenization.

As the digital transformation of financial assets continues to gain traction, industry events such as Benzinga's Future of Digital Assets conference on Nov. 14 are spotlighting these developments. The conference promises to delve deep into the evolving landscape of digital assets, making it a must-attend for stakeholders keen on understanding the future trajectory of the financial sector.

Fireblocks' collaboration with tokenization partners, including Bitbond, Securitize and Tokeny, is aimed at creating an open tokenization marketplace.

In a press release shared with Benzinga, Fireblocks stated this initiative was a response to the burgeoning demand for tokenized financial assets, which, according to BCG, was projected to grow into a $16 trillion market by 2030.

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Fireblocks stated it had witnessed a staggering 350% surge in tokenization projects from 2022 to 2023, with three-quarters of top-tier financial institutions exploring tokenization on its platform.

Michael Shaulov, co-founder and CEO of Fireblocks, expressed his enthusiasm about the acquisition, emphasizing BlockFold's expertise in crafting bespoke solutions for the banking and financial sectors.

"Bringing BlockFold’s expertise in-house means that we can better serve tier-1 financial institutions to quickly and seamlessly bring tokenization projects into production," Shaulov remarked.

Fireblocks launched more than 10 stablecoin projects since its inaugural bank-issued stablecoin for ANZ in March 2022. The company anticipated the value of tokenized money on the blockchain to reach $450 billion in the next three years.

Fireblocks in May 2023 enabled the Tel Aviv Stock Exchange and the Israeli Ministry of Finance to tokenize a government bond.

This initiative paved the way for the potential tokenization of Israel’s $15 billion annual government debt market.

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