Fidelity Digital Assets May Support Ethereum Custody Services in 2020, If There Is Demand
- President Tom Jessop of Fidelity Digital Assets was interviewed in an episode of The Scoop.
- Ethereum is presently priced at $142.93.
Ethereum has been the #2 cryptocurrency for the better part of the decade, and it looks like Fidelity Digital Assets is taking note. President Tom Jessop of Fidelity Digital Assets was recently featured in an episode of The Scoop, telling The Block that they’ve, “done a lot of work on Ethereum,” in reference to whether custody will be offered for the digital asset. Jessop added, “We intend to support it in the New Year,” and that their decision will be based on the demand for the asset by clients.
Fidelity Digital Assets (FDAS) was originally launched towards the beginning of 2019 to offer institutional investors and traders the tools they need for trading and cryptocurrency custody. During this time, FDAS has only provided support for Bitcoin, which some experts believe is move that keeps them from actually being competitors with other firms in the crypto space, like Coinbase and BitGo.
One of the biggest obstacles to the institutional adoption of any cryptocurrency has been the lack of track-record, according to Jessop. Bitcoin, being the cryptocurrency that began the whole industry, has a strong pull for institutional investors, when it comes to putting their own capital towards it. Jessop believes that other cryptocurrencies, like Ethereum, haven’t had the same appeal, which is why Fidelity hasn’t provided support for it. Jessop stated,
“How do I know that if I buy this thing, it’s gonna be around tomorrow? Like what indication of durability or longevity do I have based on the fact that the history of this asset is 10 years old?”
New York regulators approved FDAS for a trust license in November, allowing the platform to provide custody services to clients within their borders. The firm also gained more traction with investors after it was selected by Galaxy Digital as a third-party custody service for two of its recently launched Bitcoin funds.
Presently, Ethereum has a market cap of over $15 billion, and it is priced at $142.93.