The cryptocurrency space continues to grain traction despite the ongoing bear market. Financial services companies are realizing the potential of the nascent market and are working to take advantage of that potential. In this view, Fidelity has introduced cryptocurrency custody services to serve institutional cryptocurrency investors.
According to the Boston Globe, the firm will target clients such as hedge funds, family offices and trading firms. Further, the newspaper notes that the financial services giant will offer trade executions and customer services for digital assets. Towards this end, the firm created a spin-off company that will spearhead the move.
Fidelity introduces cryptocurrency custody to make digital assets more accessible to investors
Dubbed Fidelity Digital Assets, the firm will target Wall Street clients who are still unsure about their position regarding cryptocurrency. So far, the Boston Globe notes that most Wall Street giants are indifferent regarding the nascent market. Therefore, Fidelity gets the first mover advantage with the early jump into the sector.
Abigail Johnson, Fidelity Chief Executive Officer indicates that the desire of the institution is to bring cryptocurrencies closer to investors. The CEO notes that the current market and regulatory conditions sow doubt in potential investors. However, Fidelity will work to make sure digital assets are accessible to investors. The company will only offer Bitcoin and Ethereum in the initial phases of the project.
Years of research
Speaking at the Bloomberg Institutional Crypto conference, New York Tom Jessop said the project is three years’ worth of research. Jessop leads the newly incorporated Fidelity Digital Assets Company. He says that research on the possibility of launching the company began in five years ago. Interestingly, the company already runs a Bitcoin mining facility since 2015.
“We built a lot of the capabilities underlying this platform months and years ago. It’s not something where we woke up at the top of the year and said, ‘Let’s build this thing out’,” Jessop explains.
Already, the firm boasts a pipeline of customers some of whom belong to the parent company. Currently, Fidelity Investments provides savings and mutual fund products to over 13,000 financial institutions. As Fidelity introduces cryptocurrency custody services, it is counting on its brand name for success.
