Fidelity reveals new platform to trade crypto and digital assets. When it comes to naming the world’s largest asset management financial institutions, Fidelity is a MUST mention on the list. It has around $2 Trillion assets under management, how can it not be? On Monday, October 15th, the company revealed a new platform to trade and store digital assets.
In a conference that was held in New York on that day, Fidelity’s Tom Jessup announced the new service while speaking on institutional cryptocurrency investment. He said the company will be naming this new service ‘Fidelity Digital Investments LLC’ and the new division will be headed by Tom Jessup himself.
REASONS BEHIND AND THE FUTURE AHEAD OF THE NEW SERVICE
Fidelity reveals new platform to trade crypto and digital assets. Digital assets of hedge funds, institutional investors, family offices and trading firms will be handled by Fidelity for security. Also, storage and trading of digital assets under the new service that has the accompanying slogan: “Institutional Solutions for a New Asset Class.”
It’s a remarkable entry into the crypto market considering the volatility surrounding it. With Bitcoin having its going-high value and Tether’s value falling down, the firm doesn’t seem to be hindered in faith and believes that crypto is the future of money.
“Digital assets are poised to become accepted as investable assets and stores of value, tradable on global, licensed exchanges, and accessible to individuals and institutions around the world. This global decentralized framework relies on and is powered by distributed ledgers. This eliminate the need for central intermediaries to facilitate the value exchange.” said the medium post, which is the official digital financial platform of Fidelity, on the same day of the announcement of the platform.
Fidelity cites companies like DigiCash, and Hashcash in its post as stepping stones to the current state of cryptocurrency. This is because they introduced concepts like public key cryptography.
“ Our goal is to make digitally native assets, such as Bitcoin, more accessible to investors.”
- Abigail Johnson, CEO of Fidelity.
As of early 2019, the platform is planning to support Ethereum and Bitcoin. Also, it will include both over the counter trade executions and order routing.
An expected launch
Fidelity reveals new platform to trade crypto and digital assets. Previously the CEO of Fidelity had stated that the firm would come up with a digital platform by the end of 2018. When he was speaking in Boston:
“We’ve got a few things underway, a few things that are partially done but also kind of on the shelf because it’s not really the right time. We hope to have some things to announce by the end of the year.”
With this new endeavor, the company has found its way on the path of getting into the crypto-sphere. A route that most large financial institutions are also treading upon. Other financial institutions who are already on this path are Goldman Sachs, J.P. Morgan, and BlackRock.