Fireblocks Buys Dynamic Labs to Boost Onchain Finance Tools

• Fireblocks expands into consumer crypto by acquiring wallet provider Dynamic Labs. 
• The deal creates a full custody-to-consumer stack for secure onchain finance products. 
• The deal reflects ongoing consolidation trends in global crypto and fintech infrastructure. 

Fireblocks Inc., a blockchain infrastructure startup backed by companies like Sequoia Capital and Coatue Management, has acquired Dynamic Labs Inc. This company specializes in integrating digital asset services into consumer apps. 

The deal enables Fireblocks to integrate its services further into the consumer space, offering a single source of infrastructure for custody, wallet integrations, and user onboarding.

Michael Shaulov, CEO of Fireblocks, stated that the acquisition addresses a significant need among payment companies and fintechs to offer stablecoin accounts and onchain services. He said that a number of institutions are experimenting with the integration of tokenized securities, DeFi trading, and digital yield products. Fireblocks currently supports more than $4 trillion in annual digital asset transfers and counts major financial entities, including BNY Mellon, WorldPay, and Revolut, among its clients.

Dynamic’s platform enables developers to integrate cryptocurrency services into applications using tools such as passkey-based digital wallets, wallet authentication, and user onboarding modules. 

In addition, the company has enabled more than 50 million on-chain accounts, supporting clients such as Kraken (through its Inky app), Magic Eden, and Ondo Finance. Its technology makes it easy to meet top-of-funnel requirements, such as user access and wallet connections, which can help to accelerate the go-to-market for crypto-enabled applications.

Dynamic Brings Wallet Infrastructure and Developer Tools to Fireblocks

Founded in 2022 by Itai Turbahn and Yoni Goldberg, Dynamic provides developer APIs and wallet infrastructure for Web3 applications. Its tools are used in support of multi-chain wallet integrations, which makes it easier for developers to implement onchain services into consumer platforms. The startup previously referred to its product as the “Auth0 for web3,” indicating its focus on the authentication and user access layers in decentralized applications.

Dynamic has received approximately $21 million in funding from investors such as Andreessen Horowitz, Founders Fund, Circle Ventures, and Solana Ventures. In December 2023, it raised $13.5 million in its Series A round after its initial seed round of $7.5 million. As part of the deal, Fireblocks will absorb Dynamic’s 30-member team, integrating the company’s product suite into its existing infrastructure stack.

Fireblocks’ acquisition of Dynamic supports its ambition to offer an end-to-end crypto infrastructure platform. The company’s goal is to cater to both traditional institutions and emerging fintechs with tools that make it easier to integrate crypto-wallets, support stablecoins, and DeFi functionalities. 

Related: SMBG Teams with Ava Labs and Fireblocks for Stablecoin Launch

Strategic Consolidation Reflects Industry-Wide Momentum

Furthermore, the acquisition highlights a wider trend in digital asset and Fintech infrastructure sectors. This deal also aligns with Stripe’s recent acquisition of Privy, a separate crypto wallet provider. As banks and payment processors deepen their investigation into blockchain and digital asset technologies, companies offering backend services and wallet integrations are increasingly attracting acquisition interest.

Fireblocks pointed out that its expanded offering will enable clients to access products onchain quickly and securely. The combined platform will allow companies to offer features such as stablecoin accounts, automated payments, and portfolio management, along with secure custody and user onboarding infrastructure to support them.

Although the financial terms of the acquisition are not publicly disclosed, sources familiar with the deal estimate the value at around $90 million. Both companies stressed that the merger helps facilitate the faster adoption of onchain finance by enterprises, eliminating infrastructure complexities.