In line with a recent official press release by the investment company ‘Fidelity,’ itannounced that it will soon be offeringcustody and trade execution services for digital assets, targeting institutional investors like “hedge funds, family offices and market intermediaries,”and wouldnot fornowbeopen to retail investors.In line with the press release, Fidelity Digital Assetswouldbe focusing onproviding a secure, compliant, and institutional-grade omnibus storagesolutionfor Bitcoin [BTC], Ethereum [ETH] along with several other digital assets.”
Tom Jessop, the head of the newly-created business, is quoted in asstatingthat Fidelity began exploring blockchain and crypto since several yearspast, in a recent interview with CNBC he said thatthe thoughtof commercializing a “standalone” crypto firm began in mid-2017.
Fidelity citesanalysisfromGreenwichAssociates that found that 70% of institutional finance executives believe cryptowill be playing a key role within the monetarysector in the upcoming future,yetseveralarestill sitting on the sidelines before they enter the market.
Jessop told CNBC that the new companywouldleverage all of the resources ofa largeorganization — Fidelity reportedly already works with over13,000 institutional investors – to draw these actors into therisingspace.
To afinish line, the newly-created companycould draw on itsnameasa significantWall Street incumbent, and use technological solutions thatare“repurposed” fromothercomponentsof its organization, as per Jessop.
For crypto trades, the press release states that the firmwould be employing atestedinternal crossing engine andsensible smartorder router for trade execution of digital assetswhich willallow for execution at multiple market venues.
Asantecedentlyreported,unofficialreports surfaced thisyear in the month of June thatsuggested that Fidelity was hiring developersto makea cryptocurrency exchange, citing internal correspondence at the time.
The investment giant’s innovationlabsalso additionallyhad a partnership with major cryptocurrency exchange Coinbase as in mid of 2017to offerits users to viewtheir Bitcoin [BTC] holdingsalong-side theirtraditionalassets in their portfolios.