Fidelity, one of the largest asset managers in the world, is an American multinational financial services corporation based in Boston, Massachusetts. The company reportedly spends $2.5 billion per year on technologies such as artificial intelligence and blockchain.
An unnamed source said that Fidelity will join brokerages E-Trade Financial Corp. and Robinhood in offering cryptocurrency trading to clients, but unlike them, Fidelity are only catering to institutional investors for now.
“We currently have a select set of clients we’re supporting on our trading platform,” Fidelity spokeswoman Arlene Roberts said. “We will continue to roll out our services over the coming weeks and months based on our clients’ needs, jurisdictions, and other factors. Currently, our service offering is focused on bitcoin”.
Fidelity Digital Assets was launched in October 2018 and has offered cryptocurrency custody since March 2019. This subsidiary is the first step towards a “long-term vision to create a full-service enterprise-grade platform for storing, trading, and servicing eligible digital assets”.
Institutional Investors Are Keen On Holding Digital Assets In Their Portfolios
As we reported recently, forty-seven percent of institutional investors think digital assets are worth investing in. Results of a new survey from Fidelity Investments indicate that institutional investors are keen to hold digital assets in their portfolios. The research found that 22 percent of institutional investors already hold digital assets in their portfolios, with most of these investments having been made within the past three years. This number is likely to increase over the next five years.
“We’ve seen a maturation of interest in digital assets from early adopters, like crypto hedge funds, to traditional investors like family offices and endowments,” said Tom Jessop, President of Fidelity Digital Assets.