Fireblocks Enables Non-Custodial Wallet Service, Empowering Fintech Users for DeFi and Web3 Access
Crypto News – Fireblocks, a prominent player in cryptocurrency custody, has unveiled a groundbreaking non-custodial wallet service to cater to its extensive clientele in the fintech and corporate sectors. This move comes as a response to market demands, especially in the aftermath of last year’s cryptocurrency company failures, which highlighted the necessity for end consumers, using platforms like Revolut and Nubank, to have full control over their digital assets.
By offering this non-custodial solution, Fireblocks is liberating fintech companies from the inherent responsibility of acting as custodians, while simultaneously simplifying access for their end-users to explore diverse cryptocurrency offerings, including decentralized finance (DeFi) and other applications within the Web3 ecosystem, as emphasized by Fireblocks CEO, Michael Shaulov.
In the wake of high-profile collapses of crypto firms such as Celsius, BlockFi, and FTX, a growing skepticism has emerged regarding the trustworthiness of third-party custodians in safeguarding users’ cryptographic keys.
Shaulov elaborated on Fireblocks’ multi-party computation (MPC) technology, highlighting its suitability in a non-custodial framework. This technology effectively shifts counterparty risk away from corporate entities while ensuring the ability to recover wallets in case of unforeseen circumstances.
Shaulov further clarified, “This non-custodial release empowers fintechs, Web3 companies, or corporations to establish wallets where one of the key shares is securely stored with the user. This key share can reside in their web browser or mobile app, compatible with both iOS and Android devices. Meanwhile, the other key share is held either by Fireblocks or the designated service provider. Essentially, this additional key share ensures security and the ability to recover the entire wallet if, for instance, the user loses their mobile device.”
Transferring custodial responsibilities from major corporations to end-users not only enhances security but also paves the way for a broader range of opportunities in the realms of DeFi, Web3, and NFT-related offerings, according to Shaulov.