Forbes is reporting today that Fidelity Investments has announced the creation of a new company, Fidelity Digital Assets, which will act to bring institutional investors exposure to cryptocurrency trading as well as custodial and advisory solutions. The compay was announced at the Institutional Cryptocurrency Conference being held today at Bloomberg Headquarters.
Fidelity Digital Assets will offer three different areas of service for institutional investors beginning next year.
First, it will offer access to a trade execution platform for cryptocurrencies. Not quite an exchange, rather a means to match orders from customers to existing exchanges. Think of it as a pipeline that draws from the liquidity of multiple prominent exchanges in order to fill orders for institutions.
Next, there will be custodial services. FDA is promising they will be using cold storage facilities that are "geographically dispersed," and completely disconnected from the internet. This, along with an array of practical security measures should give big investors the faith to trust the company with huge stores of cryptocurrencies.
Lastly, as many of the institutions being on-boarded will be failry new to this space, FDA will offer a comprehensive customer service team to work with new customers and make sure they get exactly what they want out of this platform.
Already crypto-twitter is showing much optimism from this news:
With @fidelity launching a comprehensive range of services, it is adding to the avalanche of evidence that institutional participation in #crypto is the story of 2019. #BTC has been muted for much of 2018 highlights how actual “fiat inflows” (2019) is louder than sentiment. https://t.co/TwHxqpmFaf— Thomas Lee (@fundstrat) October 15, 2018
This stands to be a big push for the inflow of money from institutions. Arguably for Bitcoin purists, it is another step in handing digital currency back to the big banks, but for those who want to see the ecosystem thrive and the price rise, this stands to be very optimistic news indeed. Stay right here with Chepicap for any updates as this platform nears official launch.