Fidelity Investments, one of the largest financial service provider in the world has launched a new crypto trading platform. This will make it easier for institutional investors such as hedge funds and family offices to enter in the crypto-based trading area.
As per reports, the platform is known as Fidelity Digital Asset Services LLC and the notable factor in this announcement is that cryptocurrency solutions will be provided as custody. Indeed among many other recent debutants in crypto trading platforms, Fidelity is first of its kind to provide such a solution.
Statistically, Fidelity manages over $7.2 trillion in customer assets and has 27 million customers.
As per Tom Jessop, head of Fidelity Digital Assets, the company has been studying this market since the middle of last year and plans to build a “scalable infrastructure” that takes advantage of firm’s existing experience in building such platforms
Also, in a press release, the Fidelity Investments CEO and Chairman Abigail Johnson quoted that,
Our goal is to make digitally native assets, such as bitcoin, more accessible to investors. We expect to continue investing and experimenting, over the long-term, with ways to make this emerging asset class easier for our clients to understand and use
From a security point of view, the platform will provide custody solution through ‘cold storage’ which involves taking the cryptocurrency offline, and multilevel physical and cyber controls.
Perhaps, this year many institutional investors were forthcoming to invest in crypto funds. For instance, Yale University’s chief investment officer, David Swensen has made a recent investment in two funds dedicated to cryptocurrencies and other crypto fund investments include from – Harvard University, Stanford University, Dartmouth College, Massachusetts Institute of Technology and the University of North Carolina.
Well, what do you think of this move by Fidelity Investments? Will the scope for crypto increase amidst the price slump? Share your thoughts in the comments section below
