Fidelity has invested in a cloud platform for secure cryptocurrency transfers

The institutional investor-oriented blockchain start-up Fireblocks received an investment of $ 16 million in a series A round of financing from Tenaya Capital, a venture capital firm, from Cyberstarts, and from Fidelity International's subsidiary Eight Roads. It is reported by CoinDesk .

A startup is developing a cloud platform to protect cryptocurrency transfers during their movement from all sorts of risks – from stealing private keys to spoofing.

“Despite the fact that blockchain-based assets are cryptographically secure in themselves, moving them is a nightmare. After a survey of more than a hundred institutional clients, including hedge funds, broker-dealers, stock exchanges and banks, we concluded that the current process is slow and extremely susceptible to cyber attacks and human errors, ”said Fireblocks co-founder Mikhail Shailov.

The company plans to use the attracted investments to develop the infrastructure of the platform. Thus, the service will use several levels of security, and financial institutions working with the service, such as Fidelity, will be able to configure the level of access for their employees and traders to various services on the platform.

The Fireblocks solution is already using Mike Novograz’s Galaxy Digital cryptobank and Genesis Global Trading over-the-counter platform, which use it when transferring digital assets between exchanges, to over-the-counter brokers, hot and cold wallets.

In addition, 15 cryptocurrency exchanges are already working with the company, and its services are supported by over 180 digital assets.

Representatives of a startup claim that Fireblocks have already passed hundreds of millions of dollars in cryptocurrency transactions.

Recall, Fidelity Investments, which manages $ 7.2 trillion in funds, is gradually becoming more and more immersed in the world of digital assets. So, for more than six months, the company has been developing its own cryptocurrency platform.

In early May, the media reported that Fidelity Investments will launch Bitcoin trading for large investors within a few weeks.