Fireblocks Expands Digital Asset Payments Engine For Merchants
Fireblocks, a cryptocurrency custodian, is expanding its digital asset payments engine to a broader range of payment service providers (PSPs) following a trial with Checkout.com that has so far cleared $1 billion in payments.
Fireblocks bought First Digital Assets Group, a cryptocurrency payment processor, earlier this year. It has now set out to provide PSPs working on old rails with the tools needed to enable merchants, entrepreneurs, and creators to accept, handle and settle digital payments across borders.
Ran Goldi, Fireblock’s vice president and head of payments, stated:
“Our ambition in Fireblocks payments and the payments engine is to get all those companies to continue doing what they do today. Just move their rails to faster, cheaper and more transparent payment rails, which means for us, obviously, blockchain.
I would say that over the next year we’ll probably go over $10 to $20 billion of merchant settlement.”
The payments engine is the company’s first foray into that long-term strategy. It contains merchant settlements and will eventually incorporate cross-border payments, creator payouts, and cryptocurrency pay-ins.
Fireblocks has teamed with FIS’s Worldpay, which began providing merchants the option of USDC settlements early this year. Furthermore, it has an onboarding backlog of around 50 organizations for the payments engine.
According to Goldi, it distinguishes itself from other firms in the field by allowing PSPs to design whatever payment flows they want inside a blockchain-agnostic architecture rather than giving a one-size-fits-all product.
That optionality is important to Checkout.com, which has launched USDC settlements but wants to be able to add additional stablecoins or even other cryptocurrencies, according to Jess Houlgrave, Checkout.com’s head of crypto strategy. Houlgrave had this to say about the pilot:
“It’s been incredibly positively received, particularly by crypto merchants. I expect that growth to continue to the point where a very large proportion of our crypto merchants will end up with this.”
According to Goldi, the roughly 175,000 existing PSPs are generally still functioning on obsolete rails, which means businesses must wait a few days for payment. PSPs that use Fireblock’s payment service can convert fiat to stablecoins and transfer them to the merchant after the transaction is authorized.
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