Fireblocks, a leading provider of crypto custody and settlement solutions, has acquired Dynamic, a company specializing in wallet and onboarding technology that was backed by Andreessen Horowitz (a16z). This strategic acquisition marks an expansion of Fireblocks’ business operations, extending its reach from institutional clients into consumer-facing cryptocurrency applications. While the specific terms of the transaction were not disclosed, sources familiar with the matter indicated that the purchase price was approximately $90 million. The deal will incorporate Dynamic’s team of 30 employees and its existing customer base into Fireblocks, providing the New York-based firm with direct engagement in the retail sector of onchain finance. Dynamic, established in 2022 by MIT graduates Itai Turbahn and Yoni Goldberg, who are also former Juul employees, develops tools for developers aimed at embedding cryptocurrency features into mainstream applications. Their software facilitates user authentication, wallet connections, and login processes across various blockchains, functioning as an identity gateway for web3 applications. Goldberg previously characterized Dynamic as "Auth0 for web3."
Bridging Institutional and Retail Crypto Infrastructure
Founded in 2018, Fireblocks offers technology for custody, settlement, and transfers, serving banks, asset managers, and fintech companies. Its systems are designed to secure trillions of dollars in transactions monthly, utilizing multi-party computation (MPC) cryptography and hardware isolation to protect private keys. The firm's clientele includes major financial institutions that depend on its services for regulated cryptocurrency operations. By integrating Dynamic's technology, Fireblocks enhances its custody infrastructure with an onboarding and wallet interface layer. This integration empowers developers, as well as the banks and fintechs they collaborate with, to develop retail-facing crypto products that are built upon Fireblocks’ established security framework. Michael Shaulov, CEO of Fireblocks, stated, "Dynamic has built the most elegant wallet infrastructure for consumer-facing applications, with intuitive web3 onboarding and multi-chain support. Together, we now offer the complete stack for onchain finance, from custody to consumer." This acquisition effectively bridges the gap between enterprise-level custody solutions and user-facing cryptocurrency applications. For institutional clients, it streamlines the process of launching branded wallets and embedded crypto functionalities, aligning with the industry's broader trend towards regulated, full-stack infrastructure providers. Dynamic's recent feature, Delegated Access, allows applications to automate transactions and manage user funds with consent, a model that mirrors embedded finance approaches in traditional fintech.
Funding and Industry Context
Dynamic had previously secured $21 million in funding through two separate rounds. This included a $13.5 million Series A round in December 2023, led by a16z crypto and Founders Fund, and a $7.5 million seed round earlier in the same year. Additional investors in Dynamic included Breyer Capital, Castle Island Ventures, Circle Ventures, Hypersphere, and Solana Ventures. This acquisition occurs amidst a resurgence of consolidation within the digital asset infrastructure sector. As speculative trading activity has decreased, established companies are increasingly acquiring developer platforms that simplify web3 integration. Earlier this year, Coinbase acquired security startup Unbound Labs, and Consensys expanded its MetaMask suite by incorporating several smaller developer projects. Fireblocks’ acquisition follows this pattern, representing a move by well-capitalized infrastructure firms to consolidate key components of the crypto economy. The industry's focus has shifted towards tools that enhance the accessibility, security, and compliance of web3 for both retail and enterprise users.
Integration and Next Steps
Fireblocks has indicated that the acquisition will not impact its core institutional services but will expand its product offerings to cover "the full transaction lifecycle." The founders and team from Dynamic will join Fireblocks to facilitate the integration of the wallet and onboarding tools in the coming months. The company intends to make Dynamic's features accessible to developers building on Fireblocks' API and to enterprise clients looking to deploy consumer-grade crypto access points. The overarching objective is to combine Fireblocks' existing institutional-grade security with Dynamic's front-end capabilities. Fireblocks has experienced significant growth as an infrastructure provider in the digital asset space, diversifying from custody into areas such as tokenization, payments, and DeFi connectivity. With Dynamic now integrated, the firm gains a direct pathway to end-users, a crucial element that had been missing from its institutional toolkit. This acquisition reflects the maturation of the market, characterized by the convergence of crypto infrastructure. In essence, if Fireblocks represents the secure vault, Dynamic now serves as the accessible front door, both now under the same operational umbrella.