Fireblocks

What is Fireblocks?

Fireblocks provides an easy-to-use solution for securing digital assets, managing day-to-day treasury operations, connecting to exchanges, accessing DeFi, and interacting with trading counterparties. With Cryptoworth integration, you can seamlessly manage and analyze your Fireblocks data for accurate crypto accounting.

Its enterprise-grade security features include MPC-CMP (Multi-Party Computation) technology and secure hardware enclaves, ensuring a robust infrastructure for digital asset management.

With Cryptoworth’s integration, Fireblocks users can streamline their accounting processes, efficiently manage transaction data, and accelerate month-end financial close—all while ensuring compliance with financial reporting standards.

Key Features of Fireblocks

• Security:
  Fireblocks eliminates a single point of private key compromise by combining MPC-CMP and secure hardware enclaves. It is CCSS Level III, SOC2 Type II, and ISO certified for enhanced security.

• Governance:
  Protect your digital asset operations from internal collusion and attackers with the Fireblocks Policy Engine, providing flexible transaction and user controls to meet governance and risk requirements.

• Deep Liquidity:
  Connect your business to the digital asset trading ecosystem through the Fireblocks Network, securely connecting with exchanges, DeFi apps, institutional counterparties, and liquidity providers.

• All-in-One Platform:
  Run your entire digital asset business on an intuitive interface that enables you to secure tokens and NFTs, manage day-to-day operations, enforce governance, on/off-ramp crypto, interact with DeFi and Web3 apps, and meet compliance requirements.

Use Cases of Fireblocks Data in Accounting

• Accurate Cost Basis and Weighted Average Cost (WAC) Calculation
• Sync comprehensive data from Fireblocks and other relevant platforms.
• Utilize Fireblocks data to calculate precise cost basis and Weighted Average Cost (WAC), facilitating accurate financial reporting and compliance.

How Can You Integrate Fireblocks with Accounting Systems?

Integrating Fireblocks with accounting platforms enhances financial reporting and compliance for businesses managing digital assets. While Fireblocks does not directly integrate with accounting systems like QuickBooks, Xero, or NetSuite, utilizing a platform like Cryptoworth facilitates this connection.

• Accurate Cost Basis Calculation: By syncing comprehensive data from Fireblocks through Cryptoworth, businesses can calculate precise cost basis using methods like First-In-First-Out (FIFO) or Last-In-First-Out (LIFO), facilitating accurate financial reporting and compliance.
• Enhanced Reporting with Digital Asset Insights: Integrating Fireblocks data via Cryptoworth allows for the production of detailed reports, including Gain/Loss statements specific to digital asset transactions, providing a holistic view of financial health and insights for strategic decision-making.
• Compliance with Regulatory Frameworks: Cryptoworth assists businesses in adhering to various regulatory requirements by providing tools for Anti-Money Laundering (AML) and Know Your Customer (KYC) compliance, ensuring that digital asset operations meet the necessary legal standards.

Why Accountants and CFOs Choose Cryptoworth for Fireblocks

Finance managers and controllers using Fireblocks find Cryptoworth to be the tool to consolidate their custody balances with onchain data to reconcile and speed up month ends:

• Consolidate Data Seamlessly:
  Sync data from Fireblocks and other blockchain sources to consolidate all digital asset activities, eliminating manual entry errors.
• Efficiently Reconcile Accounts:
  Automatically match transaction data with real wallet balances for accurate financial reporting.
• Separate Client and Company Assets:
  Manage multiple accounts while maintaining clear boundaries between client and organizational funds for precise reporting.
• Accelerate Month-End Close:
  Automate categorization, cost-basis calculation, and reporting to reduce manual workloads and save hours.

Fireblocks x Cryptoworth Integration.

1. Cost Basis and Inventory Tracking:
   Calculate cost basis and weighted average costs (WAC) with precision using Fireblocks transaction data. Cryptoworth ensures your financial reports are tax-ready and compliant with global accounting standards.
2. Reconciliation and Sanity Checks:
   Identify discrepancies between Fireblocks data and real balances to maintain crypto data integrity. Automate the reconciliation of high-volume transactions, simplifying the process of closing the books and ensuring accurate reporting every month.
3. Automated Categorization:
   Apply customizable rules to classify transactions automatically, ensuring consistency and compliance, while speeding up month-end closing time.
4. Detailed Reporting with Insights.
   Leverage Fireblocks data for enhanced reports, including gain/loss statements, asset-specific insights, and actionable recommendations for strategic decision-making.‍
5. ERP and Accounting System Integration:
   Consolidate Fireblocks data directly with your other blockchain sources to sync with your current general ledger tool like QuickBooks, Xero, NetSuite, Sage, and more.

By leveraging Fireblocks' secure infrastructure and integrating it with robust accounting solutions through Cryptoworth, businesses can effectively produce detailed reports, including Gain/Loss statements specific to digital asset transactions, providing a holistic view of financial health and insights for strategic decision-making

What is Fireblocks Used For?

Fireblocks is a comprehensive platform designed for the secure management of digital assets. It facilitates the storage, transfer, and issuance of cryptocurrencies for institutions such as exchanges, banks, and hedge funds. By leveraging Multi-Party Computation (MPC) technology and hardware isolation, Fireblocks ensures the safety of digital assets during transactions.

Is Fireblocks a Hot Wallet?

Not exactly, Fireblocks is not a traditional EOA hot wallet. It employs a combination of MPC and hardware isolation to create a secure environment for digital asset transactions, offering a level of security that surpasses standard hot wallets.

What is the Transaction Policy of Fireblocks?

Fireblocks provides a robust governance and policy engine that allows organizations to define granular transaction policies. These policies control various aspects of transactions, including approval workflows, user permissions, and transaction limits, ensuring compliance and security in digital asset operations.

How Safe is Fireblocks?

Fireblocks is built with enterprise-grade security measures, including MPC-CMP technology and secure hardware enclaves, to protect digital assets from cyber threats and internal fraud. The platform also complies with industry standards and regulations, providing an additional layer of trust for its users.

Fireblocks Tax Calculator

While Fireblocks itself does not offer a dedicated tax calculator, integrating it with platforms like Cryptoworth can facilitate tax reporting. Cryptoworth consolidates transaction data from Fireblocks, and more than 1000 other sources, enabling accurate calculation of gains, losses, and taxable events, thereby simplifying the tax filing process.

Alternatives to Fireblocks Custody

Several alternatives to Fireblocks for digital asset custody include:

• BitGo: Offers regulated custody, staking, and trading services for institutional clients.
• Coinbase Custody: Also known as Coinbase Prime, it provides secure and compliant custody solutions for digital assets.

Each platform has its unique features and security protocols, so it's essential to assess which solution aligns best with your organization's needs. You won't need to worry about any of these tools' tax reporting and accounting capabilities, Cryptoworth supports all of them via API to help you close your month end without wasting your time connecting CSV exports.

‍

By integrating Fireblocks with Cryptoworth, accountants and financial controllers can significantly enhance the efficiency and accuracy of their month-end close processes, ensuring comprehensive financial reporting and compliance.

For more information on how Cryptoworth can optimize your Fireblocks accounting operations, schedule a demo today.

‍

‍