Fireblocks raises $310 million at a $2 billion valuation

Institutional-focused infrastructure company Fireblocks has raised $310 million in a Series D funding round. Investors valued it at more than $2 billion.

In the last 24 mths, Fireblocks has had the honor to help launch 500+ digital asset businesses globally. Today, we’re excited to announce that we’ve raised $310M in Series D funding to help us continue doing so for thousands of more businesses! https://t.co/FcyPpBJQCJ 1/3 pic.twitter.com/lpApmSYW9f

— Fireblocks (@FireblocksHQ) July 27, 2021

Fireblocks was backed by major investors: Sequoia Capital, Stripes, Spark Capital, Coatue, DRW and SCB 10X — the venture arm of Thailand’s oldest bank, Siam Commercial Bank. It became the third financial institution to invest in the company.

In March Fireblocks closed a $133 million Series C financing round at a valuation of $700 million. It saw participation from Silicon Valley Bank and BNY Mellon. The total funds raised reached $489 million.

In an interview with CoinDesk, Fireblocks CEO Mikhail Shaulov noted that the fresh investment would allow it to maintain independence.

«Against the backdrop of the consolidation we have observed in the market in recent months, many clients have grown a little nervous, particularly when it comes to custodial infrastructure. It was important for us to show them that there are enough on-balance-sheet resources and that the valuation is high to preserve independence. This helps bolster trust among existing clients and strengthen partnerships with banks», said he.

According to the press release, the funds will also be deployed to develop the Fireblocks platform and to build an “industry-standard backend for digital asset infrastructure for traditional financial institutions.”

According to TechCrunch, Fireblocks users include more than 500 institutions — up from 150 in January 2021. Clients include Binance, BitMEX, Huobi, Kraken and other major players in the sector.

Earlier in 2020 Fireblocks entered the decentralised finance market, integrating its platform with Compound. In June 2021 the latter, with the assistance of partner opened the subsidiary Compound Treasury, which provides institutions with access to the space.

Through Fireblocks’ infrastructure, digital assets worth $1 trillion have been moved. It aims to support “the next generation of digital-asset-focused companies,” including projects in the NFT and tokenised securities space.

Fireblocks operates on a subscription model. Since January its annual recurring revenue (ARR) has grown by 350%. In 2020 the figure grew by 450%.

«We expect to finish the year with a 500% growth in revenue. We have already had to revise our revenue guidance for 2021 three times», Shaulov said.

Earlier this June, the Swiss staking platform StakeHound accused Fireblocks of negligence, which led to the loss of 38,178 ETH.

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