Celsius and Crypto Security Company Fireblocks Partners to Secure Over $400 Million Worth Of Assets
The race for storage services in the crypto industry is getting intense day by day as firms seek to establish themselves as the most secure options for crypto holders. Celsius has now decided to team up with a new firm to secure some of its assets.
On Tuesday, Celsius announced that it has inked an agreement with Fireblocks, backed by Fidelity, to secure more than $400 million worth of crypto assets in about 49,000 active retail as well as institutional wallets. The agreement will allow Celsius to easily give out loans from the client’s deposits and earn interest revenue, The Block reports.
Located in London, Celsius will give out about 10% interest of the revenues generated from interest earning crypto accounts. In order for a client to earn interest, one will have to move their tokens or assets from the cold wallet to the hot wallet.
Fireblocks CEO, however, believes that Celsius has developed a rather complex algorithm which will allow generation of interests based on the deposits. Michael Shaulov explained that clients who have stored their assets in cold wallets must move them to the Fireblock’s hot wallet to earn interest.
Shaulov also disclosed that all the funds that will be shifted to Fireblocks will be insured against any security breach. However, the CEO did not divulge the finer details of the insurance policy.
Celsius still has existing partnerships with Prime Trust and BitGo which offer both hot and cold storage services. The company will still maintain the two companies for their deposits. However, Fireblocks will be used for assets stored in hot storage wallets.
Alex Mashinsky, Celsius CEO, explained that the company collected more than $475 million as deposits as well as collateral, which was stored in BitGo wallets.
Mashinsky explained that Fireblocks was contacted to address the firm’s need to regularly move the crypto assets to serve the institutional borrowers, as the existing custodians were unable to solve the matter. Currently, BitGo is working to address such challenges to enable its customers to easily move coins within its system securely.