Fireblocks Acquires First DAG – a Crypto Payment Processor for $100 Million

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Fireblocks Acquires First DAG - a Crypto Payment Processor for $100 Million
Fireblocks Acquires First DAG - a Crypto Payment Processor for $100 Million

Cryptocurrency infrastructure provider Fireblocks has acquired First Digital Asset Group (DAG), a stablecoin and digital asset payments technology platform.

Fireblocks and First DAG Reached a Cash-and-equity Deal

According to an announcement on February 16, Fireblocks and First DAG reported that they reached a cash-and-equity deal without disclosing financial details, but two sources close to the deal said the purchase price was $100 million.

Fireblocks raised $550 million from institutional investors last month, increasing its valuation to $8 billion.

The acquisition of First DAG will expand Fireblocks’ existing payment capabilities and enable payment service providers (PSPs) to accept crypto payments.

PSPs and large merchants strive to meet customer demand for cryptocurrency and digital currency payments, but offering these services often comes with challenges such as high wallet integration costs and manual AML screening.

Fireblocks Customers to Accept and Send Money in Multiple Cryptocurrencies

Fireblocks said the addition of First DAG will enhance the solutions it already offers to address these issues.

Shaulov stated that First DAG will also create a business unit within Fireblocks which will purely focus on payments, enabling their customers to accept and send money in multiple cryptocurrencies.

First DAG’s payment options include stablecoins, cryptocurrencies pegged to fiat currencies like the US dollar.

First DAG CEO Ran Goldi stated that the deal was a natural fit as the two companies have been partners for two years. He added that over the past six months, First DAG has received a lot of interest from companies claiming they were ahead of our time three years ago.

Through First DAG, merchants who work with supported payment processors can easily add an option to accept crypto payments, with funds being settled in local currency or crypto.

As part of the agreement, all First DAG employees will be transferred to Fireblocks.