- This is Fireblocks’ first-ever acquisition
- Fireblocks aims to enhance its offerings for payment buyers and service providers
Crypto infrastructure provider Fireblocks announced yesterday that it has completed an acquisition of Israeli payments processor First Digital Assets Group (First DAG). The purchase of the digital asset payments technology platform marks Fireblocks’ first acquisition. First DAG employees will be integrated into the company as part of the transaction.
While financial terms were not disclosed in the announcement, Fireblocks said the deal was paid in cash and equity. Two sources familiar with the matter indicated the price could be around $100 million.
Fireblocks plans to expand its current capabilities to enable payment service providers (PSPs) to settle and complete payments using cryptocurrencies.
As payments evolve, enabling digital currency acceptance has become essential for PSPs and merchants with large customer bases. These organizations often face barriers such as high crypto wallet integration costs and the need to implement manual anti-money laundering monitoring.
Strengthened solutions for a better experience
Fireblocks said the First Digital integration will provide broad support for B2B, B2C, cross-border and other payment methods. The plan is to settle these transactions using digital currencies and stablecoins, including USDC and Celo, with rollout expected in the spring.
“We are excited to welcome First Digital to the Fireblocks family as we accelerate our expansion plans to help every company become a crypto business. We are pushing to provide PSPs with the suite of tools they need to start accepting crypto payments”, said Michael Shaulov, CEO and founder of Fireblocks.
Shaulov also told Reuters that First DAG will form a dedicated payments unit within Fireblocks. The executive hopes this will strengthen the company’s ability to accept and remit customer transactions in a variety of crypto options.
Ran Goldi, CEO of First DAG, who joined Fireblocks as Vice President of Payments, said the deal was a natural fit for both companies given their past collaborations on joint initiatives.
“This is an exciting opportunity for the First Digital team, built on a proven, successful collaboration with Fireblocks. We believe payments should be a core capability for all fintech apps and, through the Fireblocks platform, we can make it available to the world at scale,” Goldi said.