Fidelity Investments Focussing On Bitcoin Custody Services, Rather Than Cryptocurrency Exchange

by | Oct 29, 2018 | Bitcoin, Cryptocurrency, Cryptocurrency News

Fidelity Investment | Cryptocurrency exchange | Bitcoin Custody Services

The President of Fidelity Digital Asset Services, Tom Jessop, claims that they are all set to lead crypto into an institutional investor friendly zone with their Bitcoin custody solution. He stated this in an interview with Laura Shin, in the recent episode of her Unconfirmed podcast.

In the duration of the Unconfirmed podcast, the duo had a thorough discussion surrounding cryptocurrency and blockchain in relation with Fidelity’s plan to evolve Bitcoin(BTC) and the subsequent cryptocurrency market towards a higher level of functionality and value. Answering Shin’s question, if Fidelity is interested in building its own cryptocurrency exchange, the president simply quoted that the current exchanges do a fairly good job and Fidelity is aimed at providing custody services for institutions looking to become involved in cryptocurrency.

Jessop points out that the current roadblock for cryptocurrency is the service provider and their requirement of pre-funded accounts. Fidelity is willing to build a more traditional investment platform as a remedy. The platform will enable users to execute trades on one or more exchanges at the best price, then determine how to settle once completed.

Future of Cryptocurrencies 

Delving deeper into the integrities of Fidelity custody solution, Jessop elaborated that the lack of investors with sizeable cryptocurrency positions have made the trade quite tedious. In order to resolve this issue, Fidelity will offer a cold storage solution that will invite the trust of institutional investors, given that Fidelity already manages more than $7 trillion in assets. Jessop stated that this as the key reason behind Fidelity’s concentration on custody rather than an exchange since “we know how to manage security at scale.”

Closing the interview, Jessop predicted that retail and institutional interest in the ecosystem will gradually increase, as the market is growing mature. To support his forecast, he pointed toward the cryptocurrency products and instruments planned by hedge funds managers, family offices and emerging market analysts. For 2019, Jessop said, ” expect more [influx] over this year and into ‘19, which will raise the bar for everyone and help accelerate growth in the market.”  

Read more: Crypto Will Not Collapse, Says Ethereum Co-Founder Joseph Lubin On CNBC

Arshmeet Hora

The idea of expressing one’s views and reviews through words is beyond intriguing. What started as a creative let out has now become a passion and a profession for Arshmeet K Hora. In her own words ” with every word, every article that I write, my passion towards this medium has grown stronger.”  Arshmeet covers latest crypto news and updates as well as what happening new revolving around Blockchain Technology.

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