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Custody Business around Bitcoin Is ‘Incredibly Successful’, Says Fidelity CEO

UTC by James Lovett · 3 min read
Custody Business around Bitcoin Is ‘Incredibly Successful’, Says Fidelity CEO
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From the time it began Bitcoin mining operation in 2016, Fidelity has been working to bring the future of cryptocurrencies into the legacy world.

Fidelity Investments CEO Abby Johnson revealed that it has become hard to track all the developments in the crypto sector since the previously discussed things are now turning out to be a reality at a fast pace. During an interview with Barron’s, Fidelity CEO says there has been an “incredibly successful” run around Bitcoin for the mutual fund giant’s custody business. She also added that business has a ‘tremendous pipeline.’

She said as follows:

“Building those on and off ramps around facilitating the trading between fiat currencies and cryptocurrencies is something that’s happening now, and I’m glad it’s moving along.”

From the time it began Bitcoin mining operation in 2016, Fidelity has been working to bring the future of cryptocurrencies into the legacy world.

“If you had asked me at the beginning if we or anybody was going to be prioritizing custody of bitcoin I would have said ‘No way. I mean that’s kind of the opposite of what it’s all about,” added she.

According to her, someone has to custody Bitcoin in case you are an individual dealing with an advisor that is making an estate plan.

Fidelity Digital Assets Adds Collateral Agent Capabilities, Courtesy of BlockFi

Last week Wednesday, clients operating on Fidelity’s institutional-grade digital assets custody platform were given the power to pledge bitcoin as collateral in a transaction after the launch of the new offering. Fidelity Digital Assets‘ existing custody offering, which entails customer liquidity needs trade execution venue, was strengthened and broadened with the entrance of the new capability into the digital asset financing space.

Following the launch of the collateral agent capability, a leading cryptocurrency lending platform BlockFi agreed to work with Fidelity to enable institutional customers on the platform to custody bitcoin pledged as collateral in cash loans. Institutions now have the freedom to opt from traditional asset classes after Fidelity Digital Assets incorporated more services its offering.

More opportunities for institutions are developed in the digital asset market as the players choose to marry best-in-class custody with risk-managed loan agreements. Institutional appeal towards digital assets adoption increased as over 6 in 10 investors admitted having digital assets in their portfolios, according to Fidelity’s research.

Fidelity Provided Wealthy Investors with Bitcoin Fund and Custody Services

In late August, Fidelity Investments launched its first Bitcoin fund after filing paperwork with the US Securities and Exchange Commission (SEC). The Boston-based money manager named it as the Wise Origin Bitcoin Index Fund I. Running the new business unit will be Peter Jubber, head of Fidelity Consulting head as per the filing.

A source familiar with the offer revealed that only qualified purchasers would access the Bitcoin-only fund via registered investment advisers, family offices, as well as other institutions. Participants have to be able to make a minimum investment of $100,000 in the custody of the fund.

The company also underlined its long-term commitment to blockchain technology’s future in making digitally-native assets, like BTC. Two years ago, the Fidelity Digital Assets unit started as a means for managing these for hedge funds products, trading firms, and family offices.

Fidelity’s exec announcement comes at a time when BTC failed to break the anticipated $20k mark, choosing to settle between the $18 and 19k mark at the time of writing.

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James Lovett

James Lovett is a talented crypto enthusiast who finds pleasure in sharing more knowledge on fintech, cryptocurrency as well as blockchain and frontier technologies. He likes to keep himself furnished and updated with the latest innovation in the crypto industry, blockchain technology, Internet of Things (IoT) and other technologies. As a result, he tries to furnish ardent crypto supporters with the latest news on blockchain and distributed-ledger technologies. Indeed, Blockchain and Cryptocurrency is changing the world as we know “one block at a time”. As a hobby, he also trades in small amounts of cryptos every now and then. An author with experience writing for tech, digital, and cryptocurrency blogs!

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