Fireblocks buys crypto authentication startup Dynamic, completing its offerings from 'custody to consumer'

Major crypto infrastructure firm Fireblocks has purchased Dynamic, an a16z-backed wallet platform used by the likes of Kraken, Stripe, and zerohash, among many onchain protocols. 

Dynamic provides tools to help developers embed crypto tech into “any application,” particularly simplifying top-of-the-funnel needs like user onboarding and authentication, wallet connections, and asset bridging, the companies wrote in a statement on Thursday. Co-founder Yoni Goldberg previously described the offering as "Auth0 for web3.”

Fireblocks, meanwhile, is a leading blockchain infrastructure platform that provides secure custody, transfer, and management solutions. The company deploys advanced cryptography and hardware isolation to protect against hacks, enabling institutions — from crypto-native exchanges to fintechs — to handle trillions in transactions without counterparty risk. 

"Dynamic has built the most elegant wallet infrastructure for consumer-facing applications, with intuitive web3 onboarding and multi-chain support,” Fireblocks CEO Michael Shaulov said. “Together, we now offer something the industry has never had: the complete stack for onchain finance, from custody to consumer, all on one secure, scalable platform."

Terms of the deal were officially undisclosed. A representative for the project noted the "unofficial" total is around $90 million. 

Mergers and acquisitions

The move comes amid a spate of mergers and acquisitions in the crypto and surrounding fintech sphere. 

As part of this purchase, Dynamic's 30-person team and presumably much of its existing customer base will join Fireblocks. The startup has reportedly set up over 50 million onchain accounts for applications like Kraken’s Inky, Lighter’s decentralized perps exchange, Magic Eden’s onchain collectibles market, Ondo’s tokenization offerings, and ​​zerohash’s payments portal.

On Wednesday, Dynamic rolled out a new feature called Delegated Access that enables crypto apps to act on behalf of users to automate payments, manage funds, and rebalance portfolios, among other tasks.

Founded in 2022 by Israeli-born MIT graduates and Juul alums Itai Turbahn and Yoni Goldberg, Dynamic has raised a total $21 million in funding to date, including a $13.5 million Series A in December 2023 led by a16z crypto and Founders Fund, following an earlier $7.5 million Seed round.

Other backers include heavyweights like Breyer Capital, Castle Island Ventures, Circle Ventures, Hypersphere, and Solana Ventures.