Fireblocks Acquires TRES for $130 Million
Fireblocks, a leading infrastructure provider for digital asset management, has made a significant move by acquiring the cryptocurrency accounting firm TRES for a total of $130 million. This strategic purchase aims to enhance the firm’s capabilities in tax compliance, especially geared towards institutional clients dealing with digital currencies.
In a post on X dated January 7, Fireblocks announced that this acquisition will streamline the availability of both secure storage for assets and comprehensive financial reporting all on one platform, a crucial need for institutions in today’s evolving financial landscape.
TRES: A Key Player in Crypto Accounting
TRES, which launched in early 2022, is a sophisticated financial data and accounting service geared specifically for the crypto market, boasting support for more than 280 different blockchains. The platform has gained traction among well-known firms such as Phantom, Dune, and Wintermute, highlighting its significance in the industry.
As a growing number of transactions are processed on-chain, TRES sees the increasing necessity for refined accounting solutions that cater to both digital asset companies and traditional financial institutions.
CEO Insights and Deal Structure
Michael Shaulov, CEO of Fireblocks, emphasized the need for precise accounting and audit capabilities, stressing that the integration of TRES into Fireblocks would provide customers with a robust solution for managing their digital asset operations alongside the vital financial insights required for compliance.
Additionally, sources speaking to Fortune revealed that the deal was structured with both cash and equity components, adding up to the stated $130 million.
TRES’s Independence and Future Plans
Despite this acquisition, TRES is set to retain its identity and will continue functioning as an independent entity, ensuring its existing clients and services remain stable and unaffected, according to Tal Zackon, TRES’s co-founder and CEO.
Fireblocks’ Recent Growth
This acquisition marks the second ambitious move by Fireblocks in just three months, following its earlier takeover of Dynamic, a wallet provider, for approximately $90 million in October. Around the same time, Fireblocks also announced a partnership with XION, a layer-1 blockchain focused on consumer applications, along with launching the Fireblocks Network for Payments, which is a collaborative effort involving over 40 major firms such as Circle and Stripe, aimed at creating a seamless global network for stablecoins.
Additionally, the firm has solidified partnerships with financial institutions like Singapore Gulf Bank to ensure a compliant banking environment for the crypto sector.
