Fidelity Investments launches institutional trading in bitcoin and ether
Asset management company Fidelity Investments has joined the institutional push into cryptocurrencies by launching its own trading platform offering crypto exchange services to its institutional customers.
The Boston firm is launching Fidelity Digital Assets that offers, in addition to the trading platform, enterprise-quality cryptocurrency custodial services and 24-hour advice to investors such as hedge funds and market intermediaries.
Gap in the market
Fidelity is one of the world’s largest asset managers with around $7.2tn in client assets, and it believes there is a gap in support for institutions wanting to play a part in the cryptocurrency sector.
While Greenwich Associates research has found that 70% of institutional finance executives believe cryptocurrencies will have a place in the future of the industry, many firms are waiting on the sidelines to enter this market, Fidelity said in a press release.
“Our goal is to make digitally-native assets, such as bitcoin, more accessible to investors, said Abigail P Johnson, chairman and chief executive of Fidelity Investments.
She added: “We expect to continue investing and experimenting, over the long-term, with ways to make this emerging asset class easier for our clients to understand and use.”
The company says it has been researching digital assets and blockchain since 2013 and believes its distributed ledger technology will lead to new business models and the creation of “frictionless capital markets”, while improving existing financial market infrastructure.
It joins other big institutional names offering similar services. Nomura, the Japanese bank, announced in May it was offering a cryptocurrency custodial service, while Goldman Sachs has also been reported to be exploring such a move.