Fireblocks, a New York-based cybersecurity provider for digital assets revealed that it is moving upward of $2.5 billion worth of cryptocurrencies each month. The figures are quite astonishing given the startup opened its service only on June 11 this year. The press release noted that the digital asset security provider has seen a 400% in new customer signups and 150% month to month growth in crypto transfer volume.
Fireblocks raised $16 million in funding and within 6 months of starting its operations, the startup boasts of a client list including crypto merchant bank Galaxy Digital, over-the-counter digital trading platform Genesis Global Trading, and Celsius.
The success of Fireblocks is evident in how important role cybersecurity is going to play in the future of the digital financial ecosystem. Cryptocurrencies are for sure superior in terms of transferring high amounts almost instantly with minimal transaction fees, but storing them safely is another headache. Since the popularity and adoption of cryptocurrencies have risen in the last couple of years, so did the crime and cyber theft of it.
Michael Shaulov, CEO and co-founder of Fireblocks mentioned that security is the key to their success and said,
“There are other good institutional wallet offerings on the market, but The Fireblocks' Secure Transfer Environment is what makes us so unique […] The Fireblocks Secure Transfer Environment gives financial institutions an ultra-secure account that connects to a high-speed payment network – this enables the swift and secure movement of blockchain-based digital assets between exchanges, counterparties, custodians, and customers.”
Fireblocks has managed to garner a lot of attention for its product and services right from its series A funding round. It managed to attract investment from the likes of Cyberstarts, Tenaya Capital, EightRoads (Fidelity INTL), Swisscom Ventures and MState.
The co-founder explained that the reason for their success lies in the fact that they were able to simplify the transfer process along with providing an optimum level of security. He explained
“While Blockchain-based assets by themselves are cryptographically secure, moving digital assets is a nightmare. After interviewing over 100 institutional customers, including hedge funds, broker-dealers, exchanges, and banks, we concluded that the current process is slow and highly susceptible to cyber-attacks and human errors.”
The security startup currently supports 23 digital asset exchanges from its early days when it only supported 15. Apart from that the platform also supports 180 digital currencies.
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