Is ‘Fidelity’ Adopting Crypto A Big Deal?
What would happen if the largest assets manager of the United States launched its own crypto trading platform?
Fidelity Investments Inc., also known as Fidelity or FMR, is one of the largest assets managers of the United States – if not, of the whole world. The group, based in Boston, has at least five massive active operations worldwide (such as equity mutual funds, brokerage, life insurance, benefits outsourcing and donor-advised funds, for instance), and approximately US$2,46 trillion in assets under management.
Phew! Fidelity is really one of the most powerful companies of the decade. Recently, the group announced a stand-alone company dedicated exclusively to approaching investors and cryptocurrencies, called Fidelity Digital Assets (FDAS).
The platform, which will use Bitcoin and Ethereum as initial trading currencies, means to draw institutional investors, hedge funds, family offices and also market intermediaries.
What does this mean for the global economy? Check it out below:
Fidelity Digital Assets: what’s the purpose?
Tom Jessop, that has 20 years of Wall Street experience, is leading the Fidelity Digital Assets project. According to him, the creation of the platform “will take the cryptocurrency market to a new level of maturity”, and liquidity, eventually.
The application will perform tradings and institutional advising services (for investors and users that still don’t know how crypto-trading works) 24 hours a day. Everything is designed to be aligned with the blockchain technology always-on cycle mode.
The Fidelity Digital Assets platform is built through a scalable infrastructure, taking advantage of Fidelity’s existing experience in building such applications. Jessop also declares that this kind of project “provides a sophisticated level of service and security, which is required by financial institutions and enterprises”. Their focus is clear: make crypto more accessible for big-time investors.
As it seems, the project will be a greater space to store and exchange digital assets such as cryptocurrencies. It means security, reliability, and an even more direct approach between users and crypto technology. It’s the moment to create a real institutional demand for these assets as a class.
Is Fidelity adopting crypto a big deal?
Fidelity Digital Assets’ system is not 100% clear about its performance. For us, it seems a little plastered since it presents functionality limitations. One of them is the fact that retail brokerage customers won’t be able to buy or sell any cryptocurrency at the platform. However, if they have an account at Coinbase (which is Fidelity’s partner), they can arrange to view their financial balances.
As we’ve mentioned, the idea is still not clear, but it’s promising. Since the group’s active clients already could give a scratch on the crypto-surface through the group’s partnership with Coinbase, FDA’s launch will be the perfect opportunity to invest in cryptocurrencies and value them.
It doesn’t mean that platforms developed specially for investors could immediately resuscitate cryptocurrency prices from 2018’s downtrend, but that they’re building an important groundwork for the industry’s growth, long-term. Through massive investments, crypto could have a mass adoption in years from now.
Also, by creating a platform exclusively for investors, it’s time for Wall Street and crypto get acquainted for real. Bitcoin and any cryptocurrency will finally be taken seriously by the stock market as a whole and not as a “risky sub-culture”.
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