Crypto firm Fireblocks buys payments tech platform for US$100m

[NEW YORK] Fireblocks, an infrastructure provider for cryptocurrencies, has acquired First Digital, a stablecoin and digital asset payments technology platform.

Fireblocks and First Digital said on Wednesday (Feb 16) they had reached a cash and equity deal, without disclosing financial details, but 2 sources close to the deal said the purchase price was US$100 million.

Fireblocks last month raised US$550 million from institutional investors, pushing its valuation to US$8 billion.

The First Digital acquisition will expand Fireblocks'existing payment capabilities allowing 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 entails challenges such as high wallet integration costs and manual anti-money laundering screening.

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

"What First Digital brings is an awesome product and extensive leadership and know-how in the payments domain", Fireblocks chief executive Michael Shaulov told Reuters in a telephone interview. "Specifically the product they're bringing to the market, I think is very applicable to the mass market."

First Digital will also launch a business unit within Fireblocks that is "purely focused on payments and enabling our customers to accept and remit using several kinds of cryptocurrencies," Shaulov said.

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

First Digital chief executive Ran Goldi said the deal was a natural fit, given the companies had been partners for 2 years.

He added that over the past 6 months First Digital "saw lot of interest from companies that 3 years ago said we were ahead of our time."

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

All First Digital employees will be absorbed by Fireblocks under the deal. REUTERS