Fidelity Investments – the Boston-based multinational financial services firm – has announced it is to amplify its custody and trading services for cryptocurrency assets.
The firm, with $2.8 trillion in assets under management, moved into Bitcoin in 2014 after setting up a $200,000 mining facility “for fun”. However, after seeing ‘serious potential’ in digital assets, it is now looking to ramp up its offering.
The announcement is a clear signal that one of the world’s most respected financial establishments has nailed its colours to the mast over the future of cryptocurrency.
Abigail Johnson – Fidelity’s CEO – today went on record as saying the cryptocurrency industry “is not going away”.
“As long as the value is there,” she told the Financial Times this morning, “people will look to preserve that value.”
Johnson explained that Fidelity had begun adding clients to their database at the start of this year as they expect people to begin to increasingly embrace digital assets.
She added that she anticipated a full cryptocurrency service from such an established institution would be a shot in the arm for an industry perceived to be complex and disjointed.
A determined doubling of their efforts in the crypto space will be coupled with the development of a raft of new products and services as Fidelity attempts to open up its digital assets offering to the masses.
After recently revealing it had also filed an application with the New York State Department for Financial Services to establish itself as a limited-purpose trust, it became clear the firm is also looking to target companies like Coinbase as natural rivals in the industry.
By Oliver Knight – October 18, 2019