Fireblocks Prepares Trust Company to Bolster Crypto Custody Solutions

Fireblocks’ Strategic Expansion

Cryptocurrency security firm Fireblocks is set to enhance its offerings by forming a trust company. Awaiting final approval, the Fireblocks Trust Company will provide secure, cold-storage custodial services for U.S. investors, according to recent announcements. This initiative is being overseen by the New York Department of Financial Services (NYDFS).

Global Custodian Network

Parallel to this development, Fireblocks is also introducing a Global Custodian Partner Program. This network comprises a selection of authorized custodians across various global locations including the U.S., UAE, Britain, Singapore, Thailand, and Australia. The program aims to launch with its pioneer group within this quarter.

Custodianship in the Post-FTX Era

In the aftermath of FTX’s collapse, the crypto industry has witnessed a shift towards enhanced self-custody and risk mitigation technologies. Multiparty computation (MPC), a technology espoused by Fireblocks, has been increasingly adopted to reduce counterparty risk. Fireblocks, while primarily a software provider, acknowledged the need of some clients for a custodial solution due to regulatory compliance or risk assessment requirements. Despite this new venture into custodianship, Fireblocks maintains its stance on the importance of asset self-custody.