In line with a recent official press release by the investment company ‘Fidelity,’ it announced that it will soon be offering custody and trade execution services for digital assets, targeting institutional investors like “hedge funds, family offices and market intermediaries,” and would not for now be open to retail investors. In line with the press release, Fidelity Digital Assets would be focusing on providing a secure, compliant, and institutional-grade omnibus storage solution for Bitcoin [BTC], Ethereum [ETH] along with several other digital assets.”
Tom Jessop, the head of the newly-created business, is quoted in as stating that Fidelity began exploring blockchain and crypto since several years past, in a recent interview with CNBC he said that the thought of commercializing a “standalone” crypto firm began in mid-2017.
Fidelity cites analysis from Greenwich Associates that found that 70% of institutional finance executives believe crypto will be playing a key role within the monetary sector in the upcoming future, yet several are still sitting on the sidelines before they enter the market.
Jessop told CNBC that the new company would leverage all of the resources of a large organization — Fidelity reportedly already works with over 13,000 institutional investors – to draw these actors into the rising space.
To a finish line, the newly-created company could draw on its name as a significant Wall Street incumbent, and use technological solutions that are “repurposed” from other components of its organization, as per Jessop.
For crypto trades, the press release states that the firm would be employing a tested internal crossing engine and sensible smart order router for trade execution of digital assets which will allow for execution at multiple market venues.
As antecedently reported, unofficial reports surfaced this year in the month of June that suggested that Fidelity was hiring developers to make a cryptocurrency exchange, citing internal correspondence at the time.
The investment giant’s innovation labs also additionally had a partnership with major cryptocurrency exchange Coinbase as in mid of 2017 to offer its users to view their Bitcoin [BTC] holdings along-side their traditional assets in their portfolios.