Financial services giant Fidelity Investments, which manages more than $2.6 trillion in client assets, has made a giant step into the cryptocurrency market, launching Fidelity Digital Asset Services, LLC, which will offer institutional-grade custody and trade execution services for digital assets.
According to the announcement, the new company is designed to lower the barrier of entry for institutions, including hedge funds, family offices and market intermediaries, to begin investing in digital assets.
“Our goal is to make digitally-native assets, such as bitcoin, more accessible to investors,” said Abigail Johnson, chairman and CEO of Fidelity Investments. “We expect to continue investing and experimenting, over the long-term, with ways to make this emerging asset class easier for our clients to understand and use.”
Fidelity Digital Asset Services will offer institutional-grade custody services that consist of vaulted cold storage, multi-level physical and cyber control. Additionally, the new company will leverage an internal crossing engine and smart order router to facilitate trade execution of digital assets, which ultimately works to allow for execution at multiple market venues for a single order.
While the public announcement did not detail any clients, Michael Novogratz recently revealed in an interview with Bloomberg that his cryptocurrency focused merchant bank Galaxy Digital LP (GLXY) has signed on as an early adopter of Fidelity’s new company.
This news comes less than a month since we last reported that Fidelity had detailed plans to pursue blockchain and cryptocurrency-related services, with the goal to release a product as soon as this year. The new firm indicates that the 70-year-old financial giant is moving quickly to get ahead of the coming wave of institutional adoption of digital assets.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.