Fidelity Investments, a financial services titan with more than $7 trillion in client assets, has leapt onto cyber-money bandwagon too. This week the company has announced it is setting off a digital currencies trading and custody platform.
New Crypto Trading Platform on The Spot
Fidelity Digital Asset Services will be a separated arm of the 72-year-old Fidelity Investments which will offer the company’s enterprise clients virtual assets storage and trading services.
The financial services provider announced the intentions on October 15 at Bloomberg’s Institutional Crypto event. According to CoinDesk report, Tom Jessup, who is going to be the new department’s head, hopes that the move will bring the attention of institutional investors. By them, he, in particular, means family offices, hedge funds as well as market intermediaries.
Institutional investors, as Jessup noted, are worried about calculability — they want to be certain about the platform provider once they want to deal with cyber assets. And Fidelity’s new division might become it in the long run, he explained.
As it is known, Fidelity functions as one of the five financial services giants and it has significant experience in developing platforms like the novel one for cryptos. Now it intends to establish a «scalable infrastructure» that benefits from the company’s previous know-how.
Perhaps, Fidelity will focus on a complex security system which resembles one in trading stocks and bonds, as Jessup mentioned this as one of the main concerns of institutional investors.
For now, it is known that Fidelity plans to preserve cryptos in a «cold storage» which is considered to be much more secure and efficient than the «hot» one. Moreover, the report reads, the custody will function on par with «multi-level physical and cyber controls.»
Upon the launch, Fidelity plans to present:
- trade execution
- institutional-grade custody
- dedicated client service
It will be possible to store in the platform such currencies as BTC, ETH, and others (they will be named later during the launch).