Cryptocurrency custody firm Fireblocks is rolling out a non-custodial wallet service to its extensive list of fintech and corporate clients. This move empowers end consumers using platforms like Revolut and Nubank to have complete control over their own assets. This shift comes in response to market demands following the collapses of several crypto firms last year, creating a need for users to manage their cryptographic keys themselves.
By adopting Fireblocks’ multi-party computation (MPC) technology in a non-custodial context, the burden of counterparty risk is shifted away from corporate entities. This approach still allows for wallet recovery in case of mishaps, as explained by Fireblocks CEO Michael Shaulov in an interview.
In this non-custodial setup, fintech companies, web3 firms, or corporations can create wallets where one key share is controlled by the user (either in their web browser or mobile app for both iOS and Android), while the other key share is managed by Fireblocks or the service provider. This division of responsibility enhances security and provides a means to recover the wallet if the user loses their device, for instance.
By transferring custodial responsibilities from large companies to end users, this development also paves the way for greater accessibility to DeFi, web3, and NFT-related offerings. Shaulov noted that a fully non-custodial setup, with users hosting their keys, allows access to DeFi and other web3 services that currently operate outside well-defined regulatory frameworks. This offers a new level of flexibility compared to large licensed institutions or corporations, which face regulatory and custodial constraints.
Fireblocks currently secures more than 130 million wallets for prominent companies, including BNY Mellon, BNP Paribas, Flipkart, eToro, Revolut, NuBank, and Wisdom Tree.