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Payments Tech Platform Acquired By Crypto Firm Fireblocks For $100 Mln

Payments Tech Platform Acquired By Crypto Firm Fireblocks For $100 Mln
First Digital, a stablecoin and digital asset payments technology platform, has been acquired by Fireblocks, a cryptocurrency infrastructure provider.
Without divulging financial details, Fireblocks and First Digital said on Wednesday that they had reached a cash and equity agreement, but two individuals close to the deal indicated the purchase price was $100 million.
Last month, Fireblocks raised $550 million in institutional funding, bringing its total worth to $8 billion.
Fireblocks' existing payment capabilities will be expanded as a result of the First Digital acquisition, allowing payment service providers (PSPs) to accept crypto payments.
PSPs and major merchants want to match client demand for crypto and digital currency payments, but doing so might be difficult due to high wallet integration costs and human anti-money laundering screening.
The inclusion of First Digital, according to Fireblocks, will enhance the solutions it already provides to solve those concerns.
"What First Digital brings is an awesome product and extensive leadership and know-how in the payments domain," Fireblocks Chief Executive Michael Shaulov told Reuters in a telephone interview. "Specifically the product they're bringing to the market, I think is very applicable to the mass market."
According to Shaulov, within the structure of Fireblocks, First Digital will also form a business division that will be "purely focused on payments and enabling our customers to accept and remit using a variety of cryptocurrencies".
Stablecoins, which are cryptocurrencies tethered to a fiat currency like the US dollar, is one of First Digital's payment options.
Given the firms' two-year partnership, First Digital Chief Executive Ran Goldi said the merger was a natural fit.
Over the past six months First Digital "saw a lot of interest from companies that three years ago said we were ahead of our time," he added.
Merchants who deal with supported payments service providers can simply add a crypto payment option to their website, and the money is paid in either local currency or cryptocurrency.
Under the terms of the agreement, Fireblocks will take on all of First Digital's workers.

Christopher J. Mitchell

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