Boston-based multi-trillion dollar asset manager, Fidelity Investments, is exploring the possibility of launching its Bitcoin custodial services in March, anonymous sources privy to the details of the plan told Bloomberg. Early this week, the company released an ambiguous statement which is cited in Bloomberg’s article.
“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.”
In October last year, the financial service giant announced the launch of a crypto trading arm called Fidelity Digital Asset Services LLC. The new subsidiary will focus on handling digital asset custody and trade execution for its clients. Although the initial custody solutions will be for Bitcoin (BTC) and Ethereum (ETH), the financial service firm also plans to support other cryptocurrencies in the future.
The new company intends to provide cold storage solutions to institutional investors. Since Fidelity manages assets worth trillions of dollars, the company will give the assurance of security that institutional investors require.
The company’s launch of custody solutions is expected to get more people involved in digital assets. The absence of a reputable traditional asset manager in the world of cryptocurrency has long been cited as the key reason institutional investors have been reluctant to foray into the crypto space.
Fidelity’s plan to launch Bitcoin custodial services follow moves by other major market players. The Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, is also getting ready to launch Bakkt – a platform which is targeting to serve institutional investors in the US.
The launch of Bakkt this year could trigger a bull market surge across the cryptocurrency space.
According to the CEO of crypto investment firm Galaxy Digital, Mike Novogratz, institutional “FOMO” (fear of missing out) will drive the market up this year. In an exclusive interview with Financial Times, Novogratz said the top-ranking digital currency is likely to break past $10,000 in the first quarter of 2019.