Bloomberg: Fireblocks buys blockchain startup BlockFold for $10 million

The provider of crypto custody services Fireblocks has gained control of BlockFold’s tokenization platform for $10 million, according to sources familiar with the matter, Bloomberg reports.

Founded in 2021, BlockFold specializes in working with TradFi on tokenization and smart-contract development.

Company representatives declined to comment.

The acquisition will expand Fireblocks’ capabilities in tokenization, including setup, orchestration, distribution and advisory.

The company had already worked with the startup on several projects, including the National Australia Bank’s pilot program for cross-border transfer stablecoins.

The report noted that the deal came amid rising interest from major Wall Street participants in issuing and trading traditional financial assets as tokens to streamline processes and cut costs.

In March, Citi analysts forecast the capitalization of security tokens to reach $5 trillion by 2030. According to the Boston Consulting Group, by that time the market for such assets could grow to $16 trillion.

Earlier, Ripple acquired the Swiss-based crypto custodian Metaco.

In June, ConsenSys announced the integration of the institutional version of the MetaMask wallet with Fireblocks.

In August, the latter became a participant in Mastercard’s partnership program to study CBDCsCBDCs.