Fidelity, One of the Largest Asset Managers World-Wide, Vows to Do Crypto-Custodianship Right
Fidelity is one of the most prominent asset managers in the world with over $2.46 trillion in assets under its care. The company has lots of bitcoin advocates at the moment, according to Ari Paul, a notable crypto-investor and the founder of BlockTower Capital.
The bearish trend in the crypto market is not dampening the interest of crypto-enthusiasts for Fidelity’s crypto-products.
It is worth noting that in January 2019, the company stated this officially:
“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.”
Alongside the interest from crypto-enthusiasts, lots of financial institutions are also interested in Fidelity such ICE, and Nasdaq. These interests continue to increase despite the bearish trend in the crypto-market.
Fidelity’s Continued Interest in Cryptocurrency
Two years back, Fidelity stated that it is interested in cryptocurrencies and will want to learn new things in the blockchain industry.
In July 2017, an executive in Fidelity, Hadley Stern spoke to Fortune how the company is mining Bitcoin and Ethereum to understand how blockchain and its Consensus work.
All through the year, Fidelity continued to show more interest in understanding digital assets with the aim of providing a platform to support investors in the crypto-space.
Lately, the company also said that the company has a great zeal for cryptocurrency at every level and this sparked the optimism when it comes to the rate of institutionalization in the crypto-space.
“Fidelity’s cryptocurrency culture is bonkers. Literally hundreds of passionate advocates at every level of seniority at the firm. They have more people working on crypto than the five biggest crypto funds combined. Their approach to custody from a security perspective is very impressive (at least from my relatively quick look.) Not many groups actively mitigating things like HSM supply chain risk.”
At the time when many crypto-enthusiasts doubt the future of digital assets, the interest showcased by reputable companies with Fidelity is very vital for the survival of blockchain.
Subsequently, the Chairman of New York Stock Exchange, Jeff Sprecher toward the end of 2018 stated that cryptocurrency would pull through no matter what the circumstances may be.
“Somehow bitcoin has lived in a swamp and survived. There are thousands of other tokens that you could argue are better but yet bitcoin continues to survive, thrive and attract attention.”
Fidelity’s Launch for crypto-custodian Service
Reports say that Fidelity aims to launch a crypto-custodian service, but will slow things down to make things right.
“We just completed a survey of about 450 institutions, so everything from family offices to registered investment advisors to hedge funds. It’s interesting; I think about 20% indicated that they currently allocate to digital assets with an intention to grow that.”