Earlier today, Axios reported that Visa is in late-stage talks to acquire crypto infrastructure company Fireblocks for around $2.5 billion. Fireblocks has rejected the claim.
“We are aware of the rumors about a possible acquisition of Fireblocks by Visa. This is news to us, and not true at present time,” a Fireblocks spokesperson told BeInCrypto.
The reported price also raises questions. Fireblocks raised $550 million at an $8 billion valuation in January 2022.
A $2.5 billion sale would be almost 70% below that figure, although private fundraising valuations and acquisition prices are not directly comparable.
What Would Visa Gain From Fireblocks?
Fireblocks makes software that lets banks, crypto exchanges, and payment companies securely hold and move digital assets. Its technology protects crypto wallets, controls who can approve transfers and connects businesses to blockchain networks.
For example, a payment provider can use Fireblocks to send stablecoins overseas without building its own blockchain security infrastructure.
Fireblocks says more than $300 billion in stablecoins moved across its systems each month on average over the past year. That is transaction volume, not company revenue.
Visa already has an established global payments network. Owning Fireblocks could give it ready-made technology and relationships with businesses developing stablecoin payment services.
The timing would be significant. Visa launched its own stablecoin platform in July and moved a stablecoin-powered Visa Direct funding service into commercial production this month.
Rival Mastercard completed its acquisition of stablecoin infrastructure firm BVNK in August.
If the rumored deal ever materialized, it could accelerate the shift toward blockchain-based payments and increase competition between card networks for institutional stablecoin business.
It would also raise a sensitive question for Fireblocks’ customers, some of whom compete with Visa: Would a Visa-owned Fireblocks remain a neutral technology provider?
For now, Fireblocks says the reported talks are not happening.
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