Fidelity, the fifth largest asset manager in the world has announced the launch of a separate company, Fidelity Digital Asset Services to facilitate custody and trading solutions for Cryptocurrencies like Bitcoin and Ethereum.

The 72-year-old firm is moving into the Crypto land by offering custody and trading solutions to hedge funds, family offices, and institutional investors. The firm provides various services for over 13000 institutions and manages over $7.2 Trillion in assets.

Fidelity CEO Abigail Johnson told Bloomberg:

“Our goal is to make digitally native assets, such as Bitcoin, more accessible to investors,”

The firm is not new to this asset class, the firm has been exploring digital assets for five years and mining since 2015, Bloomberg reports. Tom Jessop who heads the Crypto division in Fidelity said:

“We built a lot of the capabilities underlying this platform months and years ago, It’s not something where we woke up at the top of the year and said, ‘Let’s build this thing out.’ ”

Fidelity Digital Assets Tweeted:

Cybersecurity is one of the main focuses for the firm as it can be crucial for digital assets like Bitcoin. Fidelity will hold the funds in cold storage and will offer trade services with dedicated client service.

Blockmanity’s Take

For Cryptocurrencies like Bitcoin to become widely adopted and have increased liquidity, such solutions from big financial institutions like Fidelity, Goldman, etc are almost crucial. Bigger investors like family offices will be more comfortable dealing with regulated entities like Fidelity because it reduces third party risk for them(or at least it is believed so).

This is proof that Cryptocurrencies like Bitcoin are becoming more mainstream and is considered a legit asset class.

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