“We are live with a select group of eligible clients and will continue rolling out slowly. Our solutions are focused on the needs of hedge funds, family offices, pensions, endowments, other institutional investors”.
21 Cryptos reported last month that Fidelity’s cryptocurrency clearing and custody company would be up and running by March.
The company will specialize in the safekeeping of Bitcoin (and possibly other cryptocurrencies at a later date) for institutional investors. When acting as custodians to keep financial assets safe, financial institutions are tasked with holding and securing said assets. They do not have legal ownership of stocks, bonds, commodities, or other assets because those rights remain with the individual or institution.
Bear Market Had No Effect On Developments
Tom Jessop, Fidelity Digital Assets head, told CNBC that although the company was now live, they are still working on various parts of the platform. He noted that the bear market had caused no ill effect on the company’s development, and said that if someone started a crypto fund at the height of the market, they are “probably hurting right now”. He believes that institutional investment has continued to grow and “if anything, they are as encouraged now as they were when prices were higher”.
An official Medium post said: “We are currently serving a select set of eligible clients as we continue to build our initial solutions. We’ve established a robust set of technical and operational standards at a level that institutions have come to expect from Fidelity.
These first clients will be providing valuable testing and process refinement information that will ultimately lead to rolling out to other eligible institutions. They say that they will engage with and stage prospective clients based on their needs, jurisdiction, and other factors.
Fidelity has always invested in new technologies, reportedly spending $2.5 billion per year on blockchain, virtual reality and Artificial Intelligence. This is highly likely to benefit their new Digital Assets model.
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