Despite the suppressed crypto market, Wall Street firms are still showing an unprecedented level of interest in this nascent industry. Most recently, Fidelity Investments, one of the foremost financial institutions on planet Earth, has revealed plans to foray into the cryptosphere.
Fidelity Finally Forays Into Crypto
According to a report from CNBC, Fidelity Investments, a Boston-based financial services corporation with upwards of $2.5 trillion under management, has just made its first meaningful step into the cryptocurrency industry.
More precisely, the multinational firm, which recently turned 72 years old, announced the establishment of Fidelity Digital Asset Services (FDAS). This new company, which will be run independently from its parent organization, will offer crypto asset custody, trade execution, along with “dedicated client service.”
The platform’s custody service will reportedly offer service for Bitcoin, Ethereum, and an array of unnamed crypto assets. To secure cryptocurrency holdings, FDAS will reportedly hold assets in cold storage, while also utilizing “multi-lever physical and cyber controls” to ensure that security is upheld.
In a press release, Abigail Johnson, the CEO and Chairman of Fidelity Investments, expressed his excitement for this venture. She stated:
Our goal is to make digitally native assets, such as bitcoin, more accessible to investors.
Johnson added that she fully expects for her firm to continue exploring investing and experimenting with this “emerging asset class,” alluding to the fact that she sees long-term potential in this innovation.
Surprisingly, Tom Jessop, the head of the recently-established crypto-focused subsidiary, claimed that this move was a long time in the making, as Johnson had reportedly expressed interest in Bitcoin during early 2014.
As it stands, only institutions, such as hedge funds, endowments, and family offices, will be able to access the services that FDAS offers. However. it is expected that FDAS will eventually expand its horizons to retail clients, which make up a majority of Fidelity’s 27 million users.
Joseph Young, a respected crypto analyst, recently took to Twitter to divulge that this news is arguably as bullish as the approval of a Bitcoin or crypto-backed ETF. And as such, the arrival of Fidelity into this market may be the catalyst that will usher in the next non-linear bull run that cryptocurrencies have become well-known for.
Fidelity is the world's largest independent brokerage with $2.45 trillion assets under management, is going to facilitate crypto trades.
I would say this is as optimistic as the approval of a Bitcoin ETF
— Joseph Young (@iamjosephyoung) October 15, 2018
Be sure to stay tuned in, as this is a quickly developing story. Live Coin Watch will keep you in the loop.