Fireblocks: Traditional financial institutions are diving deeper into the crypto industry

November 06, 2022

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The head of Web3 at Fireblocks, Omer Amsel, recently noted a rise in interest from more traditional banks and financial institutions for Fireblocks’ services. He added that the validators are being run on some bank computers.

According to Amsel, traditional financial institutions are increasingly venturing into crypto and further down the rabbit hole. During an interview at Solana Ecosystem’s annual event Solana Breakpoint, Lisbon, he said that many organizations, especially the more established ones, begin with custodial services and then transition into more crypto-native interactions. He stated:

“We see more and more traditional finance exploring the way into crypto and maybe they’re taking a more timid approach”.
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Fireblocks and BNY Mellon’s partnership

As an example, he mentioned BNY Mellon’s new cryptocurrency custody service, which is powered by Fireblocks, he added: “I think it’s picking up. That’s what I would say. I think it’s a cumulative thing”. Amsel said:

“What I’m trying to say is you will see that the volume from those players just keep[s] increasing internally and as an industry and as a whole.”

Notably, last month, BNY Mellon collaborated with Fireblocks and Chainalysis to provide institutional investors with custody of Bitcoin and Ethereum.

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In certain cases, conventional financial institutions and banks have begun operating their own blockchain validators (the nodes that keep blockchains operational) due to the fact that they already possess the necessary infrastructure for this purpose.

It is important to note that over 1,500 financial institutions trust Fireblocks to safely store their cash while giving them access to blockchains and cryptocurrency services.

According to Amsel, financial institutions have a large number of servers that are optimized for high availability and are therefore suitable for operating validators. Companies can also have Fireblocks act as their token custodian and stake their tokens to their own validators using this service.

In May this year, Fireblocks updated its institutionally focused digital asset platform to include support for TRON DAO blockchain tokens (TRX and all TRC20 tokens). It is important to note that more than 1,100 tokens and 35 protocols are presently supported by Fireblocks.