Boston-headquartered investment firm Fidelity is planning to launch its Bitcoin custodian services in the coming March, according to a Bloomberg report.
The firm first announced its plans to enter the crypto custodian business in last October with the establishment of a new subsidiary called Fidelity Digital Asset Services (FDAS). The firm, however, is targeting only the big players in the market like hedge funds, family offices, and trading firms as retail businesses are kept out at least or now.
In a company statement, Fidelity said: “We are currently serving a select set of eligible clients as we continue to build our initial solutions. Over the next several months, we will thoughtfully engage with and prioritize prospective clients based on needs, jurisdiction and other factors.”
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Cryptocurrency – the Future of Finance
Fidelity’s move towards the crypto industry began under the leadership of its current CEO Abigail Johnson as the company started mining Bitcoin in 2015. She is also a proponent of the new-age digital asset, and in a conference at New York, she termed herself “a believer” saying: “I’m one of the few standing before you today from a large financial services company that has not given up on digital currencies.”
Fidelity is not the only player to jump in the crypto custodian business as firms like Coinbase are also offering the same. However, Fidelity’s reputation among the mainstream financial firms will definitely give it an edge over the competition.
In mid-2018, it was also reported that the financial giant was developing a crypto trading and storage platform. Tom Jessop, the executive in charge of FDAS then believed that many institutional investors are interested in the new asset class, however, the lack of any “trusted platform provider” is keeping them away from the market.
“These institutions require a sophisticated level of service and security, equal to the experience they’re used to when trading stocks or bonds,” Jessop said then.