Cryptocurrency transaction platform Fireblocks announced on June 2 that its Asset Transfer Network has gone live, providing an open and secure solution for financial institutions and exchanges looking to move, store, and issue digital assets on a blockchain.
More than 55 institutions, liquidity providers, lending desks, brokers, market makers, clearinghouses, and custodians, as well as 26 exchanges, are members of the network, according to a release.
Backed by Fidelity, Fireblocks is designed to transfer assets transparently, quickly, and securely on-chain, the company said. It currently supports more than 200 cryptocurrency tokens, moving $9.2B in digital assets each month. So far, more than $30B has been transferred on the network, the company claimed.
“The launch of the Fireblocks Network makes it possible for users to store and transfer assets across the entire institutional ecosystem and removes the need for any middle-men,” said Michael Shaulov, CEO and Co-founder of Fireblocks. “We’re redefining on-chain settlement processes by adding an unprecedented layer of security and efficiency, preserving the decentralized nature of blockchain and allowing it to operate at the institutional level.”
The goal is to allow financial institutions to find and connect with each other while streamlining the settlement process and post-trade operations without counterparty risk. This in turn will open “the door for traditional financial institutions to join the digital asset space,” by increasing liquidity and efficiency, the release added.
In December, Fireblocks completed the stringent Service Organization Control (SOC) 2 Type II certification, which examines whether a company’s policies, procedures, and infrastructure meet standards for security, availability, processing integrity, confidentiality, and privacy. The six-month process was performed by independent audit firm Ernst and Young, and is monitored annually.
Outside of the Fireblocks Network, transfers can be spoofed or impacted by human error and social engineering, resulting in the theft of individual and institutional digital assets, said the company. Existing methods such as test transfers and whitelisting have been ineffective and time-consuming while remaining vulnerable to fraud.
It added, “settling with a counterparty is significantly more efficient and secure, reducing a cumbersome, manual process that previously took hours or days for most institutions to one that takes just a few seconds. For institutions, utilizing the Fireblocks Network eliminates inefficient and insecure elements from the settlement process, such as deposit addresses, test transfers, and whitelisting.”