Fidelity Found Its First Custodian Client. Fidelity, a multinational corporation, as well as the world’s fourth-largest asset manager with $7.2 trillion in assets under administration (as of October this year), launched a new service that will provide crypto custodian solutions to institutional investors and accredited investors alike. This service is provided through a subsidiary called ‘Fidelity Digital Assets’. As a consequence of this launch, Fidelity found ‘Galaxy Digital’, a crypto merchant bank operated by billionaire investor Mike Novogratz, or rather, Galaxy Digital found it, within 24 hours of it’s launch at that! Galaxy Digital is listed on Toronto-based stock exchange TSX-V as its first alpha crypto custody client.
Sufficient infrastructure and services to invest in the cryptocurrency market to all 27 million personal and 23,000 business clients of Fidelity will be provided through ‘Fidelity Digital Assets’ platform
In an official press release, Fidelity’s CEO Abigail Johnson stated that the long-term goal of the company is to increase accessibility and improve infrastructure surrounding the asset class in the sector of cryptocurrencies.
Included in ‘Fidelity Digital Assets’ mission statement, is to make digitally-native assets, such as bitcoin, more attainable to investors. Fidelity expects to continue investing and experimenting over the long-term. Also, with ways to make the emerging asset class easier for clients to comprehend and use.
Fidelity Found Its First Custodian Client. The core operations of Fidelity Digital Assets include assisting institutional investors such as hedge funds, pensions, and academic institutions. This is to invest in the cryptocurrency market with appropriate institutional products. There is sufficient demand for cryptocurrencies from institutions. The fact that ‘Fidelity Digital Assets’ secured ‘Galaxy Digital’ as its first custody client within 24hrs of its launch. It is a recognition that there is institutional demand for these assets as a class. Family offices, hedge funds, other sophisticated investors, are starting to think seriously about this space.
The partnership between Fidelity and Galaxy Digital is to lead clients of the Novogratz-led firm to invest in the cryptocurrency market through Fidelity. The procedure will be similar to how, prior to the launch of ‘Fidelity Digital Assets’. Also, clients of Fidelity purchased cryptocurrencies like Bitcoin and Ethereum through ‘Coinbase’, a partnering company to Fidelity.