The Information reported that digital asset custody firm Fireblocks raised a $400 million Series E round that includes participation from Sequoia Capital. Fireblocks has some high profile institutional clients, including the largest mainstream custodian BNY Mellon which previously invested, and cryptocurrency asset manager Galaxy Digital.
In July, Fireblocks announced a $310m Series D raise at a $2 billion valuation. That round was also co-led by Sequoia Capital alongside Stripes, Spark Capital, Coatue, DRW VC and SCB 10X. The latest funding brings the total capital raised to $889 million. At that point Fireblocks had secured more than $1 trillion in transactions.
Since the Series D, Jay Clayton, the former SEC Chair, has joined the startup’s advisory board.
Technology-led digital asset custody businesses are increasingly in demand. Yesterday Coinbase said it acquired Goldman Sachs backed Unbound Security which provides key management technology that underpins custody.
One of Fireblocks’s biggest competitors, Anchorage, last announced an $80 million Series C round in February. The company has a high profile relationship with Visa, and the round was led by Singapore government investment vehicle GIC. Two weeks ago, TheInformation revealed that KKR is planning to lead a Series D round at a valuation of around $3 billion.
Another major player in the sector is Ledger, which started as a hardware wallet provider for consumers but has since diversified into other segments, including institutional custody. It’s the technology partner in Komainu, a digital asset custody joint venture with Nomura and Coinshares. Ledger raised a $380 million Series C round in July.