Fidelity Investments, the fourth largest asset manager in the world with a total asset under management of $7.2 trillion has launched a cryptocurrency trading company. It will be called Fidelity Digital Asset Services LLC.
The platform will allow trading and custody services to help hedge funds for institutional or private investors.
In a statement, Abigail P. Johnson, the Chairman and CEO of Fidelity Investments said-
“Our goal is to make digitally-native assets, such as bitcoin, more accessible to investors. We expect to continue investing and experimenting, over the long-term, with ways to make this emerging asset class easier for our clients to understand and use.”
The company noted that it’s been researching digital assets since 2013. Apparently it began with mining.
Tom Jessep, head of Fidelity Digital Assets said-
“We started exploring blockchain and digital assets several years ago, and those efforts have been successful in helping us understand and advance our thinking around cryptocurrencies.”
Fidelity, even though being a traditional investment platform has strongly supported cryptocurrencies. It helps give confidence to the remaining traditional financial sector about digital currencies, and will help speed up adoption of them.
Fidelity’s experienced history of dealing with enterprise security means that cryptocurrency will be trusted amongst institutional investors. The custody solution will include a vaulted cold storage which will store cryptocurrency offline. It will also include multilevel physical and cyber controls among other security measures taken.
2018 has a few months left, with a less formidable cryptocurrency market than 2017 so far. However with Fidelity securing institutional investments, the market growth could spike given that non tech savvy investors feel more confident.
Erik Voorhees, CEO of Shapeshift tweeted the Fidelity launch of the crypto exchange. He mentioned about limited supply of Bitcoin that will result in the cryptocurrency being valued even more than it is presently. The tweet pinpointed Fidelity customer’s in the tweet linking of how not each of them could own one BTC as opposed to holding any amount of US Dollars.
It would be impossible for every Fidelity brokerage customer to own even one Bitcoin. This is why Bitcoins are worth thousands of dollars, while a dollar is only worth one dollar (and only until next year when when it's worth 97 cents). Save wisely. https://t.co/NdEEgYNH9a
— Erik Voorhees (@ErikVoorhees) October 16, 2018
Image Source – Flickr
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