Fidelity Investments are looking to launch its Bitcoin Custody Service in March. The Boston based firm announced last year that it would offer a range of crypto products designed for large investors like hedge funds. Bitcoin storage will be the first one available, according to anonymous sources who have intimate knowledge of the scheme.
Custody is a commonplace practice in conventional markets like stocks, and involves a third party holding onto securities to reduce the risk that they will be lost or stolen.
Fidelity’s Bitcoin Custodial Service May Appeal To Wall Street
Fidelity Chief Executive Officer, Abigail Johnson, has long been a advocate of digital assets. Under her leadership, the firm began mining Bitcoin in 2015. She’s anticipating that the business, dubbed Fidelity Digital Assets, will appeal to Wall Street’s growing appetite for trading and safeguarding digital currencies.
The mutual fund colossus could hasten institutional investor’s move into crypto. Fidelity hopes that it will be able to bring the solutions and tech features of a trillion dollar global asset management company to solve the unique issues that institutional investors are faced with when they want to diversify their portfolios. They hope to win over investors who are keen on digital currency trading. The company works with more than 13 000 financial institutions and has notably hired Tom Jessop as head of corporate business development. Jessop was previously president of Chain Inc, which offers blockchain technology to financial companies.
“We saw that there were certain things institutions needed that only a firm like Fidelity could provide,” said Jessop. “We’ve got some technology that we’ve repurposed from other parts of Fidelity, we can leverage all of the resources of a big organization”.
Fidelity Digital Assets describes the new company as a “full-service, enterprise-grade platform for securing, trading, and servicing investments in digital assets.”