Fidelity Investments, an American multinational financial services corporation, will be setting its sight on March this year, to launch its Bitcoin custody service, states a report originating from Bloomberg on Jan.29.
Preferring to remain anonymous, three persons familiar with the matter were quoted by Bloomberg stating this to be the next link in the chain of events that began in October 2018, when the firm announced a new and separate company named Fidelity Digital Asset Services.
The focus of this new venture would be to offer cryptocurrency solutions like custody, starting with Bitcoin, with its main audience to initially be institutions like ” hedge funds and family offices” but not retail investors.
Fidelity, which accounts for nearly $7.2 billion in client assets, began planning for its latest crypto venture in the middle of last year, according to Tom Jessop, head of Fidelity Digital Assets.
“We saw that there were certain things institutions needed that only a firm like Fidelity could provide. We’ve got some technology that we’ve repurposed from other parts of Fidelity — we can leverage all of the resources of a big organization.”
With an annual customer engagement of 27 million, the investement giant is reportedly spending nearly $2.5 billion on enhancing the technological aspects of the firm. Fidelity’s new company was created out of its Fidelity Center for Applied Technology (FCAT).
By offering cryptocurrency custody services to cutomers, Fidelity is the first Wall Street company to engage itself with the crypto space. In a growing market where custody service providers compete with each other by offering greater incentives like better security designs and storage systems, this Boston based firm could ride in high on the the trust gained from its current stream of clients.
Recently, Goldman Sachs backed BitGo, announced the the launch of cold storage crypto trading platform, similar to what Fidelity is planning to offer.
In a statement on the occasion of its digital assets company, Fidelity Investments Chairman and CEO Abigail Johnson said:
“Our goal is to make digitally native assets, such as bitcoin, more accessible to investors.”
Initially, Fidelity is said to have reserved its services for Bitcoin holders only, with Ethereum custodian wallets to follow soon after.