Institutions remain risk-averse about crypto, says Fireblocks CEO

Fireblocks recently announced a MPC wallet as a service product

September 11, 2023 05:53 pm

mundissima/Shutterstock modified by Blockworks

Fireblocks CEO and co-founder Michael Shaulov had some harsh truths to share for institutionally-minded crypto natives — that is, people who want to see Fortune 500 companies develop blockchain solutions and dive headfirst into Web3.

“The crypto native crowd is a subset of the market that they are interested in going after,” Shaulov said during the Permissionless conference today in Austin, Texas. “Most of their addressable market is actually people that have never interacted with crypto or Web3 before.”

That’s why, Shaulov said, it’s even more complicated for large, household-named corporations to launch successful Web3 ventures.

Newsletter

Subscribe to The Breakdown

Meta’s Diem project is a perfect example of a big company misfiring in the blockchain space. Formerly known as Libra, Diem was Meta’s ultimately unsuccessful attempt to introduce a stablecoin.

But this isn’t something that’s just an issue with Meta, according to Shaulov.

He cited a recent Coinbase survey, which found that 52% of the Fortune 100 have established some kind of initiative relating to Web3 or crypto since 2020.

Looking at that number in isolation makes the state of adoption look rosy, but Shaulov said he believes that fewer than 50 recognizable brands have launched major Web3 initiatives that are repeatable.

That’s simply because there’s too much risk, which exists mainly on the regulatory front, Shaulov said. The confusion companies deal with boils down to things as foundational as how to structure a balance sheet when crypto is involved.

“If you have [ether] ETH you need to pay for transactions or you’re holding assets for your clients, how do you account for it?” Shaulov remarked.

Additionally, companies may be wary of entering crypto because of all the different licensing regimes worldwide, Shaulov contended. Finally, security concerns linger for companies that might debut wallet-based products.

Get the news in your inbox. Explore Blockworks newsletters:

The Breakdown: Decoding crypto and the markets. Daily.
0xResearch: Alpha in your inbox. Think like an analyst.

Tags

Newsletter

The Breakdown

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Digital Asset Summit 2026

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

buy tickets learn more

recent research

Research

Kinetiq Protocol: From LST Infrastructure to HIP-3 Deployer

Kinetiq has established itself as Hyperliquid's dominant liquid staking protocol, holding 82.5% of LST market share with $610M in TVL. The protocol is now expanding beyond its kHYPE staking core into higher take-rate verticals: iHYPE for institutional custody rails, Launch for HIP-3 capital formation, and Markets for builder-deployed perpetuals. We view Markets, launching Jan. 12, as the highest-potential product line given its mechanically scalable, activity-linked unit economics. Near-term revenue remains anchored by kHYPE's KIP-2 fee schedule (~$1.6M annualized), while Markets provides embedded optionality if HIP-3 economics normalize post-Growth Mode. KNTQ's setup is relatively clean: zero insider unlocks until November 2026, 6.2% buyback yield from staking revenue, and cleared airdrop overhang. Risks center on unproven Markets execution, declining kHYPE TVL despite ongoing incentives, and competition from Hyperliquid's native initiatives.

by Shaunda Devens