Fidelity Digital Asset Services is the name of the new platform launched by Boston-based financial giant Fidelity Investments to offer its clients cryptocurrency investment opportunities.
Following the announcement yesterday, the cryptocurrency market surged by 10 percent to around $220 billion, although much of this has been attributed to Bitcoin (BTC) surging to $7,700 on crypto exchange Bitfinex due to panic selling of stablecoin Tether (USDT).
Fidelity Digital Asset Services will provide custody and trading services in digital assets for it’s 27 million-strong customer base, opening up cryptocurrency to a huge, previously untapped market. Traditional financial institutions such as hedge funds and endowments will be the most likely to use and benefit from the services, which are not available to retail investors at present.
The new develop signals the first Wall Street firm of it’s kind to offer custody and trade execution to institutional investors and hints at changing perspectives for cryptocurrency.
Fidelity has not announced yet exactly which cryptocurrency exchanges it will use to facilitate trade, but have noted that they will need to comply with the ‘Fidelity Standard’ that utilizes its existing routing infrastructure. The 72-year-old firm reportedly manages over $7 trillion in client assets, 35 times the size of the entire cryptocurrency market cap.
In a press release regarding the new service, Fidelity chairman and CEO Abigail Johnson spoke of how Fidelity aims to make digital assets more accessible to investors.
“We expect to continue investing and experimenting, over the long-term, with ways to make this emerging asset class easier for our clients to understand and use.”
Following yesterdays volatile movements, Bitcoin (BTC) is currently trading at $6,460, up four percent over the past 24 hours.