Fireblocks Integrates Chainalysis‘ Know Your Transaction Feature

Fireblocks Integrates Chainalysis‘ Know Your Transaction Feature

Fireblocks will now utilize Chainalysis‘ Know Your Transaction tool to streamline compliance and Anti-Money Laundering measures.

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Blockchain analysis company Chainalysis is partnering with institutional digital-asset security specialist Fireblocks to integrate its Know Your Transaction (KYT) system to monitor crypto transactions within the platform.

According to an announcement on June 15, the addition will strengthen Fireblocks‘ security standards and Anti-Money Laundering (AML) compliance.

Strengthening AML compliance

KYT allows users to automatically screen transactions based on risk standards and ensure that non-approved trades aren’t executed without manual review. Speaking with Cointelegraph, Fireblocks CEO Michael Shaulov said:

“Compliance and security are two of the most important pillars of storing and transferring digital assets today. By integrating with Chainalysis KYT, Fireblocks is removing the regulatory obstacles that exchanges, lending desks, banks, liquidity providers and market makers face when moving crypto — ensuring that these institutions can be as secure and compliant as possible, all from the Fireblocks platform.”

Shaulov claims that in just 2019 alone, more than $4 billion worth of crypto was lost to fraud, misappropriation of funds, exchange hacks and thefts, leading the United States Department of the Treasury to declare digital assets to be one of the most significant illicit finance vulnerabilities.

Furthermore, the ability to more easily comply with AML standards could prove to be a cost-saving measure for companies in the space. A recent study by CipherTrace revealed that banks and traditional financial systems globally paid more than $6.2 billion in AML fines in 2019.

Looking ahead, Shaulov said that there are near-term plans to expand the Fireblocks Network through onboarding new institutions, offering support for new tokens, and integrating with new exchanges.

Recently, Fireblocks launched its Asset Transfer Network. The open network enables institutions to find and connect with peers and transfer assets on-chain while streamlining settlement and post-trade operations.


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Fireblocks will now utilize Chainalysis‘ Know Your Transaction tool to streamline compliance and Anti-Money Laundering measures.

Fireblocks Boosts Transaction Speed 800% With Free-to-Use Algorithm

Fireblocks Boosts Transaction Speed 800% With Free-to-Use Algorithm

Fireblocks has developed an 800% faster algorithm for secure MPC transactions and made it free-to-use for custodians and vendors

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Digital asset security specialist, Fireblocks, announced the development of a new multi-party computation, or MPC, algorithm on May 13. The algorithm is claimed to improve the transaction speed for secure digital asset transfer by 800%.

Furthermore, digital asset custodians and vendors will be able to access and use the new protocol without cost. Fireblocks does not intend to apply for patents on the new technology.

Multi-party computation explained

MPC is a form of cryptography which allows multiple parties to calculate the output of a function, taking inputs from each party, while keeping those individual inputs private.

In terms of digital asset transactions, it enables a private key to be split into multiple parts, and then recreated without the pieces needing to be assembled on a single machine first.

Essentially, it removes the single point of compromise by transforming private keys into liquid form through securely distributed transaction signing.

It also tends to incorporate an element of threshold multi-sig technology, whereby only a certain threshold number of the private key sections are needed in order to sign a transaction.

Making MPC faster and safer

The new protocol, dubbed MPC-CMP, is based on the current industry standard for MPC. It manages to increase the transaction speed by 800% by reducing the number of rounds needed to securely sign an MPC transaction from nine to one.

This is achieved by halving the number of interactive rounds down to four, of which three can take place in a pre-processing stage. This leads to a non-interactive signing protocol.

The algorithm also incorporates security improvements, such as automatically refreshing key shares every minute, protections against advanced attackers, and a universally composable proof out-of-the-box.

Making MPC free-er

Fireblocks have made the protocol available for any digital asset custodian and MPC vendor to use free of charge.

The company has stated that it will not be applying for patents on the new technology. They have also opened up to peer review to ensure the protocol’s strength and efficiency before implementation. Fireblocks CEO, Michael Shaulov, explained the rationale behind such a move:

“As financial institutions look to launch and operationalize digital asset services, we believe MPC-based technology will be paramount to delivering an experience comparable to the speed of traditional assets. We’re freely providing custodians and MPC vendors with our new algorithm to drive innovation, boost adoption, and prepare digital assets for the broader institutional market.”

Fireblocks’ platform provides institutional investors with a way to securely transfer digital assets between exchanges, wallets, and counterparties. As Cointelegraph reported, it recently hit monthly transfer volumes exceeding $7 billion. This news came alongside an expansion to meet demand in the Asia-Pacific region.


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Fireblocks has developed an 800% faster algorithm for secure MPC transactions and made it free-to-use for custodians and vendors

Fireblocks to ‘Bridge the Gap’ Between Institutional Traders and DeFi

Fireblocks to ‘Bridge the Gap’ Between Institutional Traders and DeFi

Digital asset security platform Fireblocks has partnered with Compound to be a branch for institutional players to put assets on the network

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Institutional digital asset security platform Fireblocks has announced an integration with decentralized finance (DeFi) lending platform Compound — currently the second-largest application built on Ethereum.

Entities storing assets with Fireblocks can now generate passive income by accessing Compound — an algorithmic interest rate protocol currently managing $163 million in interest-earning digital assets including cryptocurrencies and stablecoins.

The partnership will allow institutions like market makers, hedge funds and exchanges to put assets on Compound. 

Fireblocks to make things easier for institutions 

Speaking to Cointelegraph, Compound CEO Robert Leshner explained that the partnership with Fireblocks will make it easier for institutional entities to use the network. 

Leshner said, “So right now, to access this financial market, you have to be pretty technically competent and sophisticated because you have to interact with smart contracts on the Ethereum blockchain. There’s some basic interfaces that we’ve built and that third-party developers have built, but almost all of them require you to store a private key in your browser using something like Metamask.”

He stated that, while this system may work fine for a retail investor, “it’s not great for an institution with security procedures, multiple members of the organization, and deploying funds that aren’t necessarily theirs — [where] people aren’t keeping private keys in an unsecure structure.”

Instead, institutional players will use a multi-party key system that Fireblocks has built to put funds on the network. 

Fireblocks CEO Michael Shaulov said, “You can now put governance in place. For example, if someone wants to deploy a million dollars or half a million dollars into Compound, multiple users within the fund would need to approve that transaction.”

Shaulov further explained how integrating with Compound will allow its customers to benefit from holding assets that would otherwise lie dormant: 

“Think about the average OTC desk or market maker, […] first and foremost, they usually use top five, top ten assets — so they don’t [hold] assets that you can stake. And also the time frames that they hold on to an asset is not always suitable for staking. But they are still sitting on millions and millions of dollars, and it will be really beneficial for them to earn interest on those stablecoins and other assets that they hold even for a short period of time in their custody.”

Shaulov added that smart contracts on the Ethereum blockchain provide an added layer of security, saying, “The most interesting part is that […] you need to put assets into the smart contract [and] you actually don’t have the counterparty risk that you’re exposed to if you’re using other services that are not decentralized — so arguably you have less risk using Compound than putting your money in JP Morgan or Bank Lehman Brothers.”

Leshner said, “Firebox has very financially sophisticated users that don’t have to or don’t want to interact directly with smart contracts on a blockchain, and this integration bridges the gap.”

Can decentralized finance hold fast in a bear market?

As the price of all assets, including cryptocurrencies, tank in the face of the coronavirus crisis, some have doubted the resilience of certain DeFi networks. MakerDAO, the biggest player in decentralized finance on the Ethereum network, is reportedly mulling a possible, though unlikely shutdown. 

Others remain more optimistic. Leshner said, “[Compound] held up flawless, but it’s been crazy to watch how DeFi sustains itself amidst fifty percent price declines.”


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Digital asset security platform Fireblocks has partnered with Compound to be a branch for institutional players to put assets on the network

Fidelity-Backed Startup Fireblocks Is Now Certified Secure by Ernst & Young

Fidelity-Backed Startup Fireblocks Is Now Certified Secure by Ernst & Young

Digital asset security firm Fireblocks has successfully completed a major examination carried out by Big Four auditing firm Ernst & Young

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New York-based digital asset security firm Fireblocks has successfully completed a major examination carried out by Big Four auditing firm Ernst & Young (EY).

Fireblocks, which provides an institutional-grade platform for secure transfer of blockchain-based digital assets, received the Service Organization Control (SOC) 2 Type II certification performed by EY, the firm said in a press release shared with Cointelegraph on Dec. 19.

Following multiple EY inspections, which reportedly took more than six months, Fireblocks is now recognized as a company providing technology and services that meet existing strict security and data protection laws worldwide. As such, global Fireblocks’ customers can be sure that their data is protected and compliant with their company controls, policies and regulatory requirements, the firm claimed in the announcement.

Fireblocks is in talks with financial players on Wall Street

The new certification will purportedly allow Fireblocks to attract more financial players as Fireblocks has already entered talks with Wall Street firms, a representative of Fireblocks confirmed to Cointelegraph. The names of new potential partners could not be disclosed because these conversations are in progress, the spokesperson said.

Michael Shaulov, CEO and co-founder of Fireblocks, emphasized the importance of the fact that the company was examined by a third party to prove that Fireblocks stands “above and beyond the highest industry standard.” The SOC report will be tracked on an annual basis to ensure that the platform is operating in compliance with guidelines that span technology architecture, development and other operations, the press release notes.

At least 20 crypto exchanges including OKEx and HitBTC integrated

Since launching in June 2019, Fireblocks has secured over $9 billion in digital asset transfers, Fireblocks CTO and co-founder Idan Ofrat said.

As reported by Cointelegraph, the firm was launched out of stealth mode with $16 million in funding secured from high-profile investors including Eight Roads, the investment arm of major investment management firm Fidelity International. Fireblocks’s platform was integrated with 20 cryptocurrency exchanges like OKEx and HitBTC as of September 2019 and reportedly has crypto merchant bank Galaxy Digital as one of its customers.


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Digital asset security firm Fireblocks has successfully completed a major examination carried out by Big Four auditing firm Ernst & Young

Crypto Security Platform Fireblocks Now Supports 5 More Exchanges

Crypto Security Platform Fireblocks Now Supports 5 More Exchanges

Crypto security platform Fireblocks now supports a total of 20 digital asset exchanges

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Digital asset cybersecurity startup Fireblocks announced that it now supports five more cryptocurrency exchanges, bringing the total number of covered platforms to 20.

According to the official announcement, “with this release, market makers, prop traders and OTCs have a simple and secure unified workflow for securing assets in motion between 20 different exchanges.” The release states:

“Fireblocks, an enterprise platform for securing digital assets in transit, announced today five new exchange integrations, adding support for OKCoin, OKEx, Korbit, Bithub, and HitBTC. This release also expands current integrations with Huobi Global’s API and Deribit, extending its umbrella of protection to a total of 20 exchanges.”

Investing in crypto security

As Cointelegraph reported previously, the New York-based startup announced its launch out of “stealth mode” with $16 million in funding on June 11.

At the time, Fireblocks obtained the capital during its Series A funding round from Cyberstarts, Tenaya Capital, EightRoads (Fidelity INTL), Swisscom Ventures and MState. The startup reportedly counts crypto merchant bank Galaxy Digital, over-the-counter digital trading platform Genesis Global Trading and others among its customers. 

Initially, the startup supported “15 digital asset exchanges” and offered “support for over 180 cryptocurrencies, tokens, and stablecoins.”

According to Michael Shaulov, CEO and co-founder of Fireblocks, his startup created a platform which “secures the process and simplifies the movement of funds into one or two steps.”

As we reported previously, cryptocurrency wallet provider Komodo effectively hacked itself to prevent fraudsters from accessing its users’ funds.


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Crypto security platform Fireblocks now supports a total of 20 digital asset exchanges

Digital Asset Security Startup Fireblocks Leaves Stealth Mode With $16 Million in Funding

Digital Asset Security Startup Fireblocks Leaves Stealth Mode With $16 Million in Funding

Fireblocks, a digital asset cybersecurity startup, has left stealth mode with $16 million in funding

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Digital asset cybersecurity startup Fireblocks announced its launch out of stealth mode with $16 million in funding, according to a press release shared with Cointelegraph on June 11.

Per the release, Fireblocks obtained the capital during its Series A funding round from Cyberstarts, Tenaya Capital, EightRoads (Fidelity INTL), Swisscom Ventures and MState. The startup reportedly counts crypto merchant bank Galaxy Digital, over-the-counter digital trading platform Genesis Global Trading and others among its customers, with the company declaring:

“Currently, Fireblocks is integrated with 15 digital asset exchanges and offers support for over 180 cryptocurrencies, tokens, and stablecoins.”

The author of the release claims that over $3 billion in digital assets have been stolen by hackers in the past 18 months and cites the 7,000 bitcoins (BTC) stolen from major crypto exchange Binance (worth $40,705,000 at the time). Michael Shaulov, CEO and co-founder of Fireblocks, is quoted in the announcement as saying:

“While Blockchain based assets by themselves are cryptographically secure, moving digital assets is a nightmare. After interviewing over 100 institutional customers, including hedge funds, broker-dealers, exchanges, and banks, we concluded that the current process is slow and highly susceptible to cyber attacks and human errors.”

Lastly, Shaulov claims that his startup created a platform which “secures the process and simplifies the movement of funds into one or two steps.”

As Cointelegraph reported yesterday, cryptocurrency wallet provider Komodo effectively hacked itself to prevent fraudsters from accessing its users’ funds.

In May, Sean Coonce, engineering manager at cryptocurrency custodian BitGo, announced that he had fallen victim to a SIM swapping hack.


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Fireblocks, a digital asset cybersecurity startup, has left stealth mode with $16 million in funding