Fireblocks

What is Fireblocks?

Fireblocks is an easy-to-use platform for securing and managing digital asset transfers. It helps businesses simplify day-to-day operations and crypto treasury management efficiently. By connecting to exchanges, accessing DeFi, and working with trading partners, it simplifies financial workflows. When integrated with Cryptoworth, users can track and analyze treasury data for more accurate crypto accounting.

This platform ensures a robust wallet infrastructure with MPC-CMP (Multi-Party Computation) technology and secure hardware enclaves. These features create a strong infrastructure for digital asset management. Cryptoworth users can automate accounting tasks and reconcile entries. They can also close their books faster while staying compliant.

Key Features

• Security.
  The custody solution eliminates a single point of failure by combining MPC-CMP technology with secure hardware enclaves. It holds CCSS Level III, SOC2 Type II, and ISO certifications, ensuring strong protection for digital assets.

• Governance.
  Best as it safeguards digital asset operations from insider threats and cyberattacks. Its Policy Engine offers customizable transaction and user controls to meet risk and governance requirements.

• Deep Liquidity.
  The Fireblocks Network connects businesses to the digital asset trading ecosystem. Users can securely connect to the digital asset ecosystem, including exchanges, DeFi apps, institutional partners, and liquidity providers.

• All-in-One Platform.
  Users can secure tokenized assets and NFTs, manage daily operations, and enforce governance policies. They can also handle crypto payments, interact with DeFi and Web3 apps, and stay compliant.

Use Cases onchain Data in Accounting

• Accurate Cost Basis and Weighted Average Cost (WAC) Calculation
• Sync comprehensive data from its digital asset treasury operations platform.
• Use cryptocurrency data to calculate unrealized gain and loss reports. This ensures accurate financial reporting and compliance.

How Can You Integrate Crypto Data with Accounting Systems?

Integrating with accounting platforms improves financial reporting and compliance for businesses managing digital assets. Most custodial platforms do not directly connect with accounting systems like QuickBooks, Xero, or NetSuite. However, Cryptoworth bridges this gap, making the connection seamless.

• Accurate Cost Basis Calculation. Cryptoworth syncs onchain data to help businesses calculate cost basis using FIFO (First-In-First-Out) or LIFO (Last-In-First-Out) methods. This ensures accurate financial reporting and compliance.
• Enhanced Reporting with Digital Asset Insights. Businesses can generate detailed reports through Cryptoworth. These include gain/loss statements for digital asset, offering a clear financial overview and strategic insights.
• Compliance with Regulatory Frameworks. Cryptoworth helps businesses meet legal requirements by providing AML (Anti-Money Laundering) and KYC (Know Your Customer) third-party tools.

Why Accountants Choose Cryptoworth for Fireblocks

Finance managers and controllers use Cryptoworth with Fireblocks treasury management to merge custody balances with on-chain data. This helps them reconcile transactions and close month-end faster.

‍

• Consolidate Data Seamlessly.
  Sync data from this custody solution and +1000 other sources to consolidate all crypto activities. This potentially eliminates 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.

The Crypto Accounting Integration.

1. Cost Basis and Inventory Tracking.
   Accurately calculate cost basis by wallet. Cryptoworth keeps your financial reports tax-ready and compliant with US and global accounting standards.
2. Reconciliation and Sanity Checks.
   Find and fix discrepancies between this crypto treasury management data and actual balances to keep crypto records accurate. Automate the reconciliation of high-volume transactions, making it easier to close books and generate accurate reports each month.
3. Automated Categorization.
   Use custom rules to classify transactions automatically. This ensures consistency, compliance, and faster month-end closing.
4. Detailed Reporting with Insights.
   Combine on-chain and off-chain data to create detailed reports. These include gain/loss statements, asset-specific connections, and more.
5. ERP and Accounting System Integration.
   Sync digital asset data with your general ledger in QuickBooks, Xero, NetSuite, Sage, and more.

Integrating with Cryptoworth to create detailed reports, including gain/loss statements for digital asset transactions. This gives businesses the ability to produce detailed reports.

What is Crypto Treasury Management Used For?

A comprehensive platform of digital asset transfer network. It is designed for the secure management of digital assets for financial institutions. It facilitates the storage, transfer, and issuance of cryptocurrencies for institutions such as banks, and family offices. By leveraging MPC technology, it ensures the safety of digital assets during transactions for hedge funds, institutions, and enterprises.

Is Fireblocks a Hot or Warm Wallet?

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

What is the Transaction Policy of Fireblocks?

It is a governance and policy engine that allows organizations to define granular transaction policies. These rules manage different parts of trades, like approval steps, access rights, and caps, keeping safety and rules in crypto back-office work.

How Safe is Fireblocks?

It is very safe. Enterprise-grade security to protect tokenized assets from cyber threats and fraud. It also meets industry standards, giving users an extra layer of trust.

Fireblocks Tax Calculator

While the platform 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. This treasury solution enables accurate calculation of gains, losses, and taxable events.

Alternatives to Fireblocks Custody

A couple alternatives to this 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.

‍

Connecting this crypto custodian with Cryptoworth helps accountants and controllers close books faster and more accurately. This ensures clear financial reports and compliance.

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

‍

‍