Multiple media reports say that credit card giant Visa (NYSE: $V) is in talks to acquire crypto custody and stablecoin infrastructure provider Fireblocks for $2.5 billion U.S.
The purchase of privately held Fireblocks would give Visa institutional digital asset technology and bolster the the global payments company's crypto operations, say analysts.
Fireblocks provides institutional custody, stablecoin settlement, and tokenization infrastructure to banks and payment firms such as Visa.
Visa and Fireblocks are familiar with one another as they are both partners in Open Standard, a global initiative that supports stablecoin infrastructure.
The purchase price of $2.5 billion U.S. is 69% below the valuation of $8 billion U.S. that was last applied to Fireblocks in a January 2022 fundraise.
Fireblocks was founded in 2018 and initially concentrated on helping financial institutions secure and transfer cryptocurrencies such as Bitcoin (CRYPTO: $BTC).
In recent years, its business has grown to include stablecoin payments, digital asset settlement, and the tokenization of real-world assets such as stocks and bonds.
Fireblocks' technology supports institutions that need to manage blockchain transactions while maintaining internal approval procedures and compliance controls.
Rumors of a takeover by Visa come as the credit card company looks to bolster its global payments network with crypto and other digital assets.
Fireblocks says that its payment network processes more than $200 billion U.S. in stablecoin transactions each month, covering activity across payment providers, financial technology firms, and commercial banks.
No deal has been announced and neither Visa nor Fireblocks have commented on a potential deal.
Fireblocks is a privately held company and its stock doesn't trade on a public exchange. V stock has gained 19% over the past 12 months to trade at $410.95 U.S. per share.