Fidelity International has invested $14 million in Hong Kong-listed digital asset firm BC Group. The funding form the arm of US asset manager Fidelity Investments, which claims to have 23 million retail accounts, is part of a $36 million round that the public technology startup raised earlier this month in a share placement.
The recent round of funding will allow BC Group’s digital asset business, OSL, to build its team and expand its product portfolio. OSL provides software-as-a-service, brokerage, exchange, and custody services for institutions and professional investors.
OSL was also one of the first to apply for a license of a crypto trading platform under the Hong Kong Securities and Futures Commission’s (SFC) digital asset licensing framework. This coveted license will allow the firm to offer wider crypto-related services and cater to regulated asset managers seeking to invest in security tokens and other digital assets.
This collaboration combines Fidelity’s expertise from asset administration with digital asset security, in a bid to provide a safekeeping service for investment houses looking to gain exposure to the rapidly emerging asset class.
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Fidelity crypto arm expands into Europe
“The placement is further evidence that major institutional investors are entering the digital asset space. It reinforces what we believe at BC Group and OSL; mainstream adoption is inevitable and leading financial firms are making investments in companies that are committed to institutional quality infrastructure, compliance and regulatory standards,” Steve Zhang, CFO of BC Group, told The Block.
The placement also comes as Fidelity Digital Assets, the cryptocurrency arm of Boston-based financial giant, has expanded its cryptocurrency trading and custody services to companies based in Europe. However, Fidelity’s cryptocurrency unit only serves institutional investors such as hedge funds, family offices, and market intermediaries.
The new company already features institutional-grade, crypto linked services, including custody offerings to safeguard holdings and execution services 24 hours a day, seven days a week.