Global finance is on the cusp of a pathbreaking transformation, thanks to the mainstream adoption of digital assets like Bitcoin. As an increasing number of businesses go digital and assets move on-chain, stakeholders face substantial pressure to ensure the safety of the assets.
With the variety of digital assets in circulation increasing with every passing day, building safe custody and wallet infra in-house could be a daunting task.
Thus, the need for a secure wallet infrastructure emerges.
In the digital economy spearheaded by cryptocurrencies and digital wallets, private keys are the gateway to digital assets. Safeguarding the private keys is paramount to keep the funds secure. While “not your key, not your crypto” has been the mantra for individuals and institutions since the emergence of the Web3 economy, institutions need robust digital asset custody providers with comprehensive wallet infrastructure to fulfil their requirements. With their immutable nature, smart contracts have been able to make transactions tamper-proof. However, legacy systems lacked the ability to facilitate interaction between different chains.
As we move from the awareness stage to the adoption stage, interoperability is a must for institutions. Sensing a need for a robust wallet infrastructure, legacy solutions are on the path to build wallet-as-a-service solutions, that are customizable, interoperable, more secure, and offer low latency. To simplify, the scope of work for wallet solutions providers is no longer limited to merely serving as the custodian of assets. From enabling diversification to facilitating cross-chain transactions, the use cases continue to increase with the rising adoption of crypto.
That’s exactly why businesses dealing in digital assets need a robust secure wallet infrastructure. Besides securing the private keys, a secure wallet infrastructure also helps stakeholders prevent unauthorized access and fraudulent activities. Let’s discuss the benefits of a secure wallet infrastructure in detail.
Top 5 Alternatives To Fireblocks
Liminal custody offers a robust and secure wallet infrastructure to crypto-native businesses and institutions, helping them scale and manage their digital assets securely with plug-and-play wallet architecture. Liminal follows a zero-key leakage tolerance approach, helping businesses eliminate the risks associated with digital asset transfers, such as cyber-attacks, internal collusion, and human error.
Built by industry experts, Liminal safeguards assets worth over $550 million. With its presence in 12+ countries that continue to expand with strategic partnerships, Liminal has successfully processed transactions worth over $6000 million, helping businesses save 100+ manual hours. Liminal analyses demand and transaction activities of businesses to securely manage assets across multiple wallet configurations.
Here are the top features of Liminal:
- Automation Engine to automate the movement of digital assets for enhanced productivity and security. No human intervention = no manual error
- Highly secure firewall to thoroughly screen all incoming and outgoing transactions for security practices and regulatory compliance
- Bank-grade security of digital assets through security and compliance-first approach
- Setup compliance checks to ensure industry-standard compliance, real-time monitoring, and precise information sharing from a single dashboard
Qredo is another leading custody provider when it comes to securing digital assets. Its distributed MPC technology allows institutions to manage and trade digital assets while maintaining self-custody. Qredo eliminated the need to manage private keys, thereby eliminating the dependence on centralized solutions, by allowing institutions to manage digital assets and smart contract interactions securely.
The Qredo custody protocol introduces an inventive decentralized custody mechanism, harnessing decentralized multi-party computation (dMPC) technology for secure storage of key shards and transaction signing. This sophisticated cryptographic signature scheme not only eradicates the necessity for private keys but also delivers industry-leading signing performance. The dMPC technology is complemented by QredoChain, which facilitates internal asset settlements or swaps (cross-chain) as well as handles MPC’s signature requests for actions like withdrawals or smart contract interactions.
Here are the top features of Qredo:
- Eliminates single point of failure through decentralized MPC (dMPC)
- Top-notch self-custody user experience, allowing users to apply familiar user permissions, transaction limits, and hierarchical asset management
- In-custody collateral is 100% collateralized by Layer 1 deposits, allowing fund managers to supervise and control actions through network consensus.
BitGo offers secure wallet infrastructure services to crypto exchanges, retail platforms, crypto-native businesses, and developers. From hot wallets to self-managed cold wallets, BitGo offers a wide range of wallet-as-a-service solutions to its users. Besides offering custody for digital assets, BitGo also offers solutions like collateral management to help institutions segregate collateral from trading partners and exchanges.
The BitGo wallet supports 200+ different cryptocurrencies. The BitGo wallet is protected with multi-sig and key management features. The wallet splits the keys between itself and the customer. To simplify, BitGo adds an additional layer of security, making it difficult for notorious hackers to breach the security of the wallet.
Here are the top features of BitGo:
- Practically unhackable as assets and private keys are stored on machines that are not connected to the internet
- Up to $250 million insurance against theft or loss of keys
- Allows to deploy funds from cold storage and generate yield through lending or staking to reap rewards
- Highly customizable. Allows to pair custodial wallets and hot wallets for increased security
Anchorage combines asset custody and regulatory compliance to offer the best of both worlds. Unlike other platforms in the list, Anchorage is a crypto platform that allows services like trading, staking, and governance, besides a secure wallet infrastructure. Anchorage’s digital custody solution uses a behavioral analytics, private keys, and biometric authentication to safeguard digital assets and private keys.
Since client assets are not recognized on Anchorage Digital’s balance sheet, they are not part of a debtor estate in the event of bankruptcy. Anchorage’s external transfer API allows institutions to distribute assets in custody to streamline withdrawals to meet vesting schedules.
Here are the top features of Anchorage that:
- Stake Ethereum and over a dozen assets straight from custody to generate yield without compromising on security
- In-agency trading desk for institutions to enjoy rapid fast settlements
- Serves as a crypto exchange as well as a custodian
Atato is tailor-made to help institutions and crypto-native businesses deal in ERC-20 tokens securely. It allows institutions to add any EVM chain with a single click while leveraging multi-party computation technology to maximize security and minimize network fees by up to 90%. It mainly serves institutions and businesses across Asia and Europe and stands out due to its cost-effective offerings.
Atato also comes with a WalletConnect feature, allowing institutions to access various functionalities by connecting to dApps across different blockchains. What started as a secure wallet infrastructure for ERC-20 tokens, now works equally well for non-EVM chains.
Here are the top features of Atato that:
- Tiered or per-wallet pricing without any AUC (assets under custody) fees
- Cutting-edge MPC technology to repel hacks or breaches
- Bring Your Own Chain (BYOC) and Bring Your Own Tokens (BYOT) for seamless cross-chain operations
- Workspace functionality to organize wallets based on location, specific needs, and rule sets.
Now that we have had a look at the top 5 alternatives to Fireblocks, let us understand what helps them qualify for the list
Fireblocks vs Others: Comparing Key Features
|Non-custodian wallets, direct custody wallets
|Hot and cold wallets with MPC and Multi-Sig for self and managed custody
|Self custody vaults, Web3 wallets
|Hot wallets, cold wallets, NFT wallets, self managed custodial wallets
|Institutional grade custody solution
|ERC-20 and 50 other protocols
|54+ ERC-20 and BEP-20 assets
|All cryptocurrencies unless specified otherwise
|1200+ ERC-20 tokens
|Enterprise-grade MPC custody secured by cryptographic defences
|ISO, SOC2 &
CCSS Level-3 QSP
|ISO27001-Certified and ISO22301-Certified.
|ISM, Kudelski Security-certified
|KYC, AML and travel-rule compliance
|Travel-rule compliance, KYC, AML, CFT
|SOC-1, SOC-2 Compliant
|AICPA SOC Compliant
|Starts from $375/month
|Free, Pro and Enterprise plans
|Variable fees based on trax volume
|Starting from $100/month
The chart above depicts a comparative analysis of the top 5 wallet-as-a-service alternatives to Fireblocks. While most solutions are highly secure, it eventually comes down to factors like tokens supported, geographic location of operation, compliance standards, and pricing.
Fireblocks vs Others: How To Choose
While deciding on the right secure wallet infrastructure for a crypto business or assets, there are certain factors besides pricing that must be considered.
The chart below depicts the other key factors to consider while making a decision
|Exchanges, OTC, Web3 firms, Hedge Funds, HNI, Market makers
|In-house experts for internal system audits, Licences in Hong Kong and Abu Dhabi, partnered with government leaders, gas fee savings up to 15%
|Asset Managers, Neo and Commercial banks, exchanges, DeFi protocols, Web3 developers
|Trusted by leading players like ConsenSys, access to dApps through MetaMask and WalletConnect,
|Exchanges, retail platforms, crypto firms, developers
|Allows to create wallets programmatically for seamless management, can be combined with ledger, transaction monitoring, whitelisting, and control
|Defi protocols, RIAs, VC Firms, Asset Managers
|Full-stack treasury management, pre-mainnet support, seamless external transfers through API
|Web3 institutions, DeFi protocols
|Tailor-made for EVM chain, dApps integration, add any token/chain with 1-click, up to 90% less network fees
Why Crypto Institutions Need A Secure Wallet Infrastructure
A secure wallet infrastructure helps institutions execute secure asset transfers, safeguard private keys, and ensure compliance adherence. There are several key reasons institutions need a secure wallet infrastructure.
Secure Diverse Asset Management: You can’t cater to a global audience and expect to deal with only a single asset. Businesses have to deal with a diverse range of digital assets. A secure wallet infrastructure or custody solution helps you manage different assets securely. The requirements of institutions extend beyond safeguarding private keys. With tons of chains and thousands of tokens out there, a wallet infrastructure should enable interoperability for seamless cross-chain transactions.
Seamless Integration With Other Services: Operating in an interconnected industry like Web3 means interacting with a multitude of services, including trading platforms and payment gateways. A robust wallet infrastructure platform helps institutions integrate with different services seamlessly to serve consumers better.
Customization and Scalability: Different institutions have unique needs based on their size, industry, and operational requirements. A wallet infrastructure platform that allows customization and scalability ensures that the solution can grow and adapt to the changing needs of the institution.
Transaction Speed and Efficiency: In a fast-paced digital environment, transaction speed is crucial. Wallet platforms with optimized transaction processes and low latency can enhance the efficiency of financial operations for institutions. Aiming for 100% transaction finality, is a major advantage of integrating a secure wallet infrastructure into your system.
So far, the wallet infrastructure or wallet-as-a-service space has been dominated by platforms like Fireblocks but as we can see there are better players entering into the game giving Fireblocks a good run for their money. Which one impressed you the most?
The above comparison presents a transparent picture of where the wallet-as-a-service industry stands in terms of offerings. It’s never a ‘one size fits all’ type of arrangement. If you are seeking a secret wallet infrastructure for developers with a hierarchical infrastructure, BitGo might be the ideal choice for you. If you require to experiment with multiple chains and new tokens, you should explore Atato’s offerings. Similarly, if you are looking for a reliable solution with efficient operations and certified security standards, Liminal stands out as the ideal choice.
Just like Fireblocks, all the aforementioned wallet infrastructures have their own advantages and limitations. Ultimately, it all boils down to your requirements, frequency, and volume of transactions, and geographic location. Thus, you must do your due diligence before taking a call.
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