Fidelity CEO hopes to roll out crypto-related products by the end of the year

19 Sep, 2018
by Joeri Cant
News
Fidelity CEO hopes to roll out crypto-related products by the end of the year

According to the xconomy.com, the CEO of Fidelity Investments, Abigail Johnson said that the firm is hoping to roll out several crypto-related products by the end of the year. Fidelity is the fourth largest asset manager with $2.4 trillion in assets under management as of December 2017.

Johnson was delivering a speech at the Boston Fintech Week, where she explained that the development of some of the products is already completed, but that it is not the right time for those products to be introduced to the market.

'We’ve got a few things underway, a few things that are partially done but also kind of on the shelf because it’s not really the right time' Johnson said. 'We hope to have some things to announce by the end of the year.'

In 2015, the firm’s independent public charity organization, Fidelity Charitable, started to allow philanthropists to donate to nonprofits using Bitcoin, which resulted in $69 million in Bitcoin and other cryptocurrencies donated to Fidelity Charitable. 10 times the amount of the previous year according to the organization.

'That was a surprising hit' Johnson said. 'It worked out because there were so many people, newly incredibly wealthy through Bitcoin, who were looking to become philanthropists. We made it really easy for them.'

Johnson's speech was welcomed by many crypto investors who yearn for some good news, however, the CEO of the blockchain cybersecurity firm Hosho, Yo Kwon, expressed concerns that the Fidelity Investments’ decision to move into cryptocurrency could leave Fidelity vulnerable to attack by malicious agents.

'Cryptocurrency exchanges are faced with security issues that differ from traditional websites and even banks. Crypto exchanges run the risk of irreversibly losing hundreds of millions of dollars. The consequences in these cases are more dire and could in some cases mean the end of one’s business.' he said.

'While it’s great that a company like Fidelity is moving towards blockchain and digital asset adoption, the risk factors associated with the move are that much greater. Fidelity could expose themselves as hacker bait. The greater the bait, the more motivated hackers will be to get inside.'

Time will tell!

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