Expansion of Crypto Custody to Beyond Bitcoin – Fidelity, the world’s fourth-largest asset management company, is exploring the possibility of expanding its custodian services beyond Bitcoin to other assets in the crypto market.
Tom Jessop, the head of Fidelity Digital Assets which is a cryptocurrency custodial service provider operated by Fidelity. Said that the organization is evaluating the demand for the top five cryptocurrencies in the market. And may potentially integrate support for the remaining assets.
The Fidelity executive said at the Block FS conference in New York:
“I think there is demand for the next four or five in the rank of market cap order. So we will be looking at that.”
Expansion of Crypto Custody to Beyond Bitcoin -This statement of Jessop came at a time when major financial institutions like Goldman Sachs and State Street are still waiting for either regulatory clarity or sufficient demand from customers to support cryptocurrencies.
Until a regulatory green light is received from local financial authorities, State Street cannot begin to operate as a custodian. Regardless of the increasing interest in the asset class. Goldman Sachs is in a similar position, and it is waiting for regulatory clarity. Before it officially begins serving customers as a cryptocurrency custodian.
Most of the infrastructure that is being built by leading financial institutions in the U.S. market. It is being tailored towards institutional investors who are seeking to invest at least $5 million to the cryptocurrency market,. Which is the minimum investment threshold on Coinbase Custody.
Expansion of Crypto Custody to Beyond Bitcoin -Currently, the demand for crypto from institutional investors remains uncertainty and the only way the market can evaluate it is through the evaluation of the performance of custodians that already the exist in the space, including Fidelity, Coinbase, and BitGo.
The regulatory barrier between financial institutions and digital asset custodianship is preventing Goldman Sachs, State Street, Morgan Stanley. And other corporations from storing cryptocurrencies on behalf of their customers.
While it could take months for major financial institutions to receive regulatory approval, the companies see enough demand for crypto to justify their entrance into the cryptocurrency sector.