Fidelity Investments launches cryptocurrency platform for institutional investors
Fidelity Investments, one of the largest companies on management of assets in the world, launches its own cryptocurrency platform. This writes Forbes.
Subsidiary Fidelity Digital Assets will provide corporate storage solutions for cryptocurrencies and trafficking, as well as consulting services (around the clock). The launch of a subsidiary company with 100 employees at the moment, the last and perhaps the biggest exit of institutional investors in the cryptocurrency market. To date, Fidelity Investments caters to $7.2 trillion. client assets and provides clearing, custody and investment services 13 000 institutional consulting firms and brokers. Head Fidelity Digital Assets That Jessop says:
It is the recognition of the existence of institutional demand for these assets as a class. Family offices, hedge funds and other investors are beginning to take seriously this market.
Fidelity Digital Assets presented at the event in the headquarters of Bloomberg, will provide three main services. The most complex of these include Depository services for bitcoin, ether and other cryptocurrencies. These services provide institutional investors an acceptable way for them to ensure the safety of assets in a physical store. According to Jessup, storage, “distributed over several geographically distant places”, constitute the cold wallets, that is, not only have software protection, but not connected to the Internet, which complicates their hacking. Also Fidelity Digital Assets will provide trading services through several third-party operators that will link customers Fidelity with stock exchanges.
Chairman and chief Executive officer of Fidelity Investments, Abigail Johnson said that the launch of the platform is part of a larger plan that will allow various investors to “understand and use” a wide variety of assets issued on the blockchain. She says:
Our goal is to make digital assets such as bitcoin more accessible to investors.
Tom Jessop, a former head of corporate development, Fidelity, and well acquainted with the world of cryptocurrency and the blockchain. Jessop joined the financial giant in January 2018 after a brief time as President blockchain startup Chain, which was recently acquired by the Stellar Development Foundation. Jessup invited for the post of President of the Chain in April 2017, after 17 years at Goldman Sachs.
The Fidelity experimentation with blockchain technology started in 2013 with the launch of the incubator, a part of Fidelity Center for Applied Technology. In 2015, the philanthropic arm of the company started to accept donations in bitcoin. In the past year, Fidelity has provided customers with the ability to view their cryptocurrency balances due to partnership with Coinbase. This was the reason for the assumptions that Fidelity engaged in the creation of its own cryptocurrency platform.