By
Bhushan Akolkar
May 14th, 2024
Fidelity is going to widen the list of cryptocurrencies available on its institutional crypto platform called Fidelity Digital Asset Services.
Last month financial services giant Fidelity Investments caused a lot of talks. The firm that was founded 72 years ago announced the launch of its new subsidiary called Fidelity Digital Asset Services. As CoinSpeaker has reported the main task of this new entity is to provide cryptocurrency storage and trading services to institutional and enterprise clients.
At that time it was said that Fidelity Digital Asset Services platform would offer custody and trading services only for Bitcoin and Ethereum. Nevertheless, now there are some more details revealed about the future of this institutional crypto asset platform.
Cryptocurrencies to Be Offered
As it has become known in the framework of the Block FS conference in New York, Fidelity Investments wants to expand its platform’s offerings. The firm is planning to go beyond just two cryptos adding trading services for the top five to seven cryptocurrencies by market capitalization.
According to Tom Jessop, head of Fidelity Digital Asset Services, “there is demand for the next four or five in rank of market cap order”. That’s why the company will be looking at that.
Tom Jessop explained that they are trying to do their best to provide their clients with the best experience and now they see that their 13,000-plus institutional clients are showing interest in cryptocurrencies that account for a major part of the current market cap.
Fidelity’s Plans
Speaking about their plans for expansion, he said:
“I think when it comes to security tokens or tokens that are likely to be deemed securities, we are waiting for that space to develop. We have had some interest but we don’t think it’s a groundswell of interest, so our focus is really on the top, call it five-seven, before we start building capabilities for the tail. But I think it will come.”
If we look at the list of major cryptocurrencies right now, Jessop’s words could mean that they are going to widen their digital asset supply with XRP, Bitcoin Cash, Stellar, Eos, and Litecoin.
Fidelity’s platform is not an exchange, it offers access to a trade execution platform, custodial services and advice from company experts. Adding new coins and expanding opportunities for their clients, Fidelity will seriously strengthen its positions among the institutional players’ community.
VC Crypto Fund
Last year, Fidelity launched its crypto venture fund to support cryptocurrencies and crypto-related companies. The fund experienced not the best times when its two key members left the company to start their own crypto-focused business.
Nevertheless, now the Fidelity fund is back headed by equity analyst Sachin Patodia who has been working at Fidelity for 11 years already. It is claimed that the second version of the fund will work at a higher scale in comparison with its predecessor.