Summary

Financial management giant Fidelity to expand Bitcoin and cryptocurrency trading for institutional investors

ErisX exchange will offer deeper liquidity books for Bitcoin trading

Customers at Fidelity Digital Assets (FDA) can access US-based exchange ErisX’s spot market to trade Bitcoin. ErisX is both centralized and more importantly, a regulated exchange. The platform will be made available to verified institutional investors.

All customers will have access to the same liquidity pool and alleviate the competitive advantage of some gain through OTC trading.

We’re excited to deepen our strategic relationship with ErisX and to give our clients more liquidity in their digital asset trading, Terrence Dempsey, head of product at Fidelity Digital Assets

The ErisX exchange will provide increased liquidity for institutional investors interested in digital assets. Furthermore, the platform offers a centralized platform with the backing of a very reputable firm in the finance world. The announcement did not mention if other cryptocurrencies will be available on the platform.

What This Means

ErisX is a regulated exchange, and thus, separating it from the majority of cryptocurrency exchanges. Exchange regulation is controversial in the cryptosphere. However, regulation will make cryptocurrencies a more attractive investment for institutional investors and normal investors alike as it helps alleviate the risk.

What’s more is the recent surge in digital asset adoption.

We believe ErisX’s central limit order book exchange model is critical to the maturation of crypto markets. Coupled with their technical aptitude, accessible order sizes, and a robust regulatory framework, ErisX is an attractive solution to securely access digital assets. Terrence Dempsey, head of product at Fidelity Digital Assets

As cryptocurrency and blockchain technology goes mainstream, investors will look for an accredited platform to invest with. Without a platform, investors can not invest and as a result, the crypto space will lack the much needed institutional investment. As a result, Fidelity and ErisX may be a vital part of the growing crypto market.

As Fidelity begins to expand Bitcoin and cryptocurrency trading, we will see greater support from institutional investors and thus bolstering mainstream adoption.

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