Fidelity Investments, which manage $7.2 trillion in client assets, is the latest to jump on the Bitcoin bandwagon. The firm announced that it is considering offering custody services for digital assets. The financial services provider is the first of its kind among the traditional Wall Street giants to offer cryptocurrency services such as storage and custody.
Fidelity Investments Enters the crypto space
CNBC reported that a Boston-based financial services conglomerate – Fidelity Investments – has just made its initial step into the volatile territory of cryptos. The multinational company said it is getting ready to launch Fidelity Digital Asset Services (FDAS). Besides “dedicated client service,” the company will offer cryptocurrency asset custody and trade execution for investors.
The platform will apparently offer service for BTC, ETH, and a range of unspecified crypto assets. Apart from utilizing “multi-lever physical and cyber controls” to secure crypto holdings, FDAS will also hold assets in an offline storage.
Fidelity Digital Assets will enable institutional investors to trade cryptocurrencies on multiple exchanges that meet the “fidelity standard” by leveraging their existing internal crossing engine and smart order routing.
Fidelity is the first Wall Street Firm to launch a crypto desk
A few months ago, Fidelity Investments’ Chief Executive Officer Abigail Johnson said that the company was seriously thinking about starting a cryptocurrency trading desk. She added the firm was planning to launch its crypto product before the end of the year. She said that the company’s goal is to make digital assets more accessible to investors.
With that said, Fidelity Investments is the first Wall Street firm to enter the cryptocurrency world. Even so many competitors have also announced their plans to launch crypto-related operations.
Goldman Sachs, Citigroup, Nasdaq, JPMorgan and many others are already working on cryptocurrencies and announced they will release their crypto products in the near future. It remains to be seen if these major companies will embrace the crypto challenge.