Investment firm fidelity is a multi-national financial services firm located in Boston, the U.S. With more than $2.5 trillion capital in the form of securities, it is one of the largest investment firms, as of March 2018.
According to Coindesk news outlet, the amount of capital allocated by this firm for its cryptocurrency services section is not yet clear, and several cryptocurrencies are being evaluated to be included in the cryptocurrency section of this firm.
Also, Bloomberg said in a statement that Fidelity will officially launch its cryptocurrency services section in March.
Fidelity announced that:
“We are currently offering special services to some of our eligible clients, and we intend to prioritize our prospective clients based on needs, competencies, and other factors in order for them to have access to our cryptocurrency services.”
According to an article published by Bloomberg in this regard, the first cryptocurrency that is going to be available in Fidelity’s cryptocurrency services is Bitcoin, after which Ethereum will be released.
Launching of cryptocurrency services platform in March conforms to what Tom Jessop, executive officer in charge of Fidelity’s cryptocurrency services, said back in December to Coindesk news outlet about launching this platform in the first quarter of 2019.
It is not yet clear when the other part of Fidelity Digital Asset Services (FDAS), which is going to act as a medium in trading cryptocurrencies between Fidelity customers and market builders, will be launched.
Fidelity, which is considered to be a giant in the financial services market, unveiled a cryptocurrency storing and trading platform last fall. At the time, Tom Jessop said that some of the large institutions that work with Fidelity, would like to enter the cryptocurrency market, but to do so, they first need a reliable platform that offers cryptocurrency services.
These institutions require advanced-level services and security in order to have the same feeling of trust as when they were trading stocks or securities in the field of cryptocurrencies.
In the conventional financial markets, such as stock market, a third party will intervene in the trades to reduce the risk of loss or theft of assets as much as possible. However, since many newcomers in the financial markets are inclined to use safekeeping services, to ensure the safety of their securities, many experienced people in Wall Street suggest Fidelity services. Other such large companies that can be utilized for these financial services include Bank of New York Mellon and JP Morgan Bank, and since hacking and theft are prevalent in the cryptocurrency market, the need for more safekeeping in this field is more felt compared to other financial markets.
At first, Fidelity stated that it would only support two cryptocurrencies; namely Bitcoin and Ethereum, but after some time, the company is now considering to add five more of the top cryptocurrencies to its platform based on their ranking with respect to their market volume.
Moreover, Tom Jessop stated in late November that the greatest demands received so far from the customers regarding support from cryptocurrencies were about two superior currencies; i.e., Bitcoin and Ethereum.
Fidelity hopes to find its way to the biggest security providers, and succeed in attracting customers who are interested in trading cryptocurrencies to turn benefit from its well-known name.