Fast growing FinTech firm Revolut has decided to work with network and crypto security firm Fireblocks on new crypto tools for its more than 13 million users. The companies are working to create deeper crypto tools for Revolut's already successful platform. According to Revolut, “Moving to Fireblocks’ wallet infrastructure gives us a competitive edge over other financial applications as it will enable us to rapidly add more advanced crypto features as the space continues to evolve at breakneck speed: we are now working closely with the Fireblocks team to explore all the new experiences that we can offer our customers in the near future.”
With more crypto tools entering the marketplace, companies like Revolut have to think about how they will continue to attract clients that need advanced crypto services. One of the biggest issues that is beginning to surface is custodianship, and how crypto assets are stored by service providers. If a company wants to attract institutional users, chain-of-custody and custodial agreements need to be worked out up front. In many cases third-party services providers, like FinTech firms and crypto exchanges, take full control of client assets, with no safeguards in place in case of a bankruptcy, or massive losses by the service provider.