Crypto Safekeeping Specialist Fireblocks Introduces Non-Custodial Wallet Service

 The move will free up big fintechs from acting as custodians and makes it easier for their end users to access DeFi and other Web3 applications, Fireblocks said

Fireblocks, a cryptocurrency custody firm, is providing its fintech and corporate clients with a non-custodial wallet service. This service allows end consumers on platforms like Revolut and Nubank to have full control over their assets, addressing market demands following issues in the crypto industry last year. It also enables fintech firms to offer exotic crypto options like DeFi and Web3 applications more easily to their users. Fireblocks CEO Michael Shaulov highlights the importance of this move in enhancing user access and control in the cryptocurrency realm.

In the wake of high-profile collapses of crypto firms like Celsius, BlockFi and FTX, the market has shifted, driven by a general mistrust when it comes to third party custodians being able to hold a user’s cryptographic keys.

Fireblocks' multi-party computation (MPC) technology is well-suited for non-custodial setups, reducing counterparty risk for corporate entities while enabling wallet recovery in case of mishaps, as explained by Shaulov in an interview with CoinDesk.

In this non-custodial approach, fintech, web3 companies, or corporations can create wallets where one key share resides with the user, either in their web browser or mobile app (available on iOS and Android), while the other key share is held by Fireblocks or the service provider. The latter key share is primarily responsible for security and wallet recovery in scenarios like a lost phone.

This shift away from custodial responsibilities held by large companies toward end users has the added benefit of opening up opportunities for greater participation in DeFi, web3, and NFT-related offerings, according to Shaulov.

“A fully non-custodial setup where the customer is hosting the key, allows access to DeFi and other web3 services that are currently outside of a well-defined regulatory scope,” Shaulov said. “What was previously hard for large licenced institutions or big corporates, can be built onto the wallet experience when firms don’t have all those regulatory, custodial limitations.”

Fireblocks currently secures over 130 million wallets for big companies including the likes of BNY Mellon, BNP Paribas, Flipkart, eToro, Revolut, NuBank and Wisdom Tree.