According to reports made by Bloomberg, three sources have confirmed that Fidelity Investments will be launching its Bitcoin custody service this coming March.
Fidelity Investments Delving Into The Crypto Sector
The company announced through a statement that it is currently providing the service to a select few eligible clients as it continues to develop its initial solutions. The statement goes on to add that through the coming months it will be focused on engaging with and prioritizing the needs and jurisdiction of the company’s prospective clients, among other factors.
A source close to the new enterprise reported to CoinDesk that the cold storage functionality of the service was already active. The source also stated that there are assets that are already under management.
Last year Fidelity, which is a financial services company currently managing over $7.2 trillion in assets based in Boston, announced that it was looking to get into the Crypto market. The company cited an increase in institutional demand for the Crypto as the reason for the decision to explore the sector.
Tom Jessop Heading the New Crypto Holding Company
During the time this announcement was made the firm also launched another company, Fidelity Assets Digital that would be in charge of managing the Crypto assets. Tom Jessop would be the head of the Crypto holding company. Jessop has over fifteen years of experience in finance.
Fidelity will be bringing in the technical knowhow and solutions from the asset management giant into the Crypto sphere to deal with the unique set of challenges faced by institutional investors looking to get into the Crypto space.
Jessop told CNBC that the company saw that some of the things required by institutions were only able to be provided by a firm like Fidelity. Jessop also added that the company will be repurposing some of the technology from Fidelity, having the privilege of leveraging a major organization’s resources.
Fidelity Assets Digital’s website states that the new company is a full-service platform facilitating the securing, servicing and trading of digital assets investments through the provision of a trustworthy, highly available service for the storing, transacting and servicing of the digital asset investments.
Fidelity has been looking into offering cold storage solutions for the various Crypto assets in the market since last year. The first Crypto that the company is looking to test the cold storage service, alongside other services relating to Crypto investing like trade executions, is Bitcoin.
The Launch Positive News For The Crypto Market
Some of the leading financial institutions within the United States are building infrastructure geared towards institutional investors that are looking to make an investment of atleast $5 million to the Crypto sphere. This shows that institutional investors are seeing a potential within the Crypto market, current bearish trend notwithstanding.
The launch of the new Bitcoin services by Fidelity slated for March is being received with enthusiasm by a Crypto market that has been experiencing a tough run since last year. The current price of Bitcoin is expected to possibly drop below $3000.