Digital asset custody and infrastructure firm Fireblocks Inc. has acquired Tres Finance Ltd., a leading provider of crypto accounting, reconciliation and financial management suite for digital assets.

Fireblocks said Wednesday that for years, the cryptocurrency industry has grown from facilitating global payments using digital currency such as stablecoins and generating value using tokenized assets to create a financial ecosystem using the blockchain. With these evolutions, business opportunities continue to grow, creating new operational overheads.

Amid these new needs are tax compliance records for financial operations, and this led the company to ink the deal to buy Tres Finance to build financial controls directly into its infrastructure and virtual asset management platform.

The digital asset regulatory landscape is quickly crystallizing, especially in the United States and the European Union. The U.S. recently passed the Guiding and Establishing National Innovation for U.S. Stablecoins Act in October, providing a framework for banks and businesses to interact with digital assets permissively and the EU passed Markets in Crypto-Assets in 2022, providing a focus on stablecoins.

Stablecoins are a type of cryptocurrency that maintains parity with another currency, such as the U.S. dollar. This makes stablecoins ideal for retail exchange or as a bridge to more volatile currencies such as bitcoin and Ethereum.

Traditional financial institutions continue to expand their adoption of digital assets and provide them to both businesses and consumers. Banks now tokenize deposits, companies such as PayPal Inc. and Square Inc. offer stablecoin and crypto payments, and neobanks have begun to open treasury and wallets using cryptocurrency and stablecoins.

Blockchain enthusiasts tout that this enables faster settlements, lower costs and the ability to provide payments across borders with less challenge than traditional payment rails.

However, the current cryptocurrency token and cryptocurrency management services lack built-in accounting and reporting systems that interconnect well with existing traditional finance. Fireblocks said this is a gap that Tres Finance will help solve.

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