Following the collapse of crypto exchange FTX and other centralized entities last year, providing non-custodial services for Web3 offerings has become front and center for many businesses within the industry. Digital asset enterprise platform Fireblocks is hoping to help make the leap into Web3 easier for corporate players with the roll-out of its non-custodial wallet-as-a-service offering.
Fireblocks counts Web2 companies such as BNY Mellon, BNP Paribas, Revlout, NuBank and eToro, among others, as its customers. The new white-label solution from Fireblocks will enable end users of its corporate clients to have complete control of their assets, according to a press release from the company.
“It allows businesses to never expose users to Fireblocks’ or their own operational risks while enabling seamless recovery if the users lost access to their devices,” said the company in the release.
This new service takes the custodial burden off of the companies while also providing an easy way to introduce their end users to Web3 applications by simplifying the setup process of non-custodial wallets.
However, users might not always be able to roam freely in the world of Web3 using this solution. Integrated into Fireblocks’ offering is a policy engine that will enable businesses to provide end users with a gated wallet experience where they can only interact with defined decentralized applications. This aims to enable companies to maintain regulatory compliance, while also safeguarding users from scams and cyberattacks, the release said.
The solution from Fireblocks utilizes Multi-Party Computation, which is a type of cryptography that enables multiple parties to collectively come together and perform a computation using the data they hold without ever revealing the private data to each other.
One key share is stored on the customers’ device, while the other is maintained in an Intel SGX-enabled server managed by Fireblocks. By keeping one key share on the customer’s device, they are ensuring that Fireblocks or the service provider can never have access to their funds.
The key share held by Fireblocks, however, can be used to enable the recovery of the customer’s key share. This can be done through social logins or local backups.
Fireblocks raised $550 million last year at a valuation of $8 billion, which made the company the highest-valued digital asset infrastructure provider globally. Its investors include Altimeter, Coatue, Sequoia, and Index Ventures, among others.