(Bloomberg) -- Fireblocks Inc., the crypto company backed by Sequoia Capital and Coatue Management, has acquired BlockFold, a Melbourne-based startup that helps financial institutions build blockchain-based systems, people with knowledge of the matter said. 

Fireblocks paid about $10 million for BlockFold, said one of the people, who asked not to be identified as the deal hasn’t been publicly announced. Representatives for both companies declined to comment.

While Fireblocks already works with large financial institutions including Bank of New York Mellon Corp., BNP Paribas SA and the Tel Aviv Stock Exchange, it has predominantly offered them services around custody technology. Buying BlockFold offers it a quick way of expanding its range of offerings to such clients, the person said. 

New York-based Fireblocks is one of crypto’s most well-funded startups, having raised some $1.2 billion so far. The company, which employs around 650 people in the US and Israel, was valued at $8 billion in its latest financing round in January 2022. 

The deal comes as large Wall Street firms ramp up efforts to issue and trade traditional financial assets like bonds and private-equity investments over blockchain networks, seeking to simplify processes and cut costs. As much as $5 trillion worth of traditional financial assets could be tokenized by 2030, Citigroup Inc. analysts said in March.

That trend is sparking consolidation among crypto firms. In May, Ripple Labs Inc. agreed to acquire Swiss-based crypto custodian Metaco for $250 million. 

Read More: Wall Street Spots Blockchain Opportunities as Crypto Stumbles

Founded in 2021, BlockFold specializes in tokenization and smart-contract development with clients such as large financial institutions. Fireblocks and BlockFold have already worked together on projects including National Australia Bank’s recent cross-border stablecoin transfer.

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