Major investment company Fidelity will reportedly launch its Bitcoin custody service in March, according to a report published by Bloomberg on January 29th.
Fidelity Bitcoin Custody Planned for March
Fidelity – an American investment company which has over $7.2 trillion in assets under management, will launch its Bitcoin custody service in March, Bloomberg reports, citing sources familiar to the matter.
According to the report, this step is a continuation of a plan which began in October 2018 when the Fidelity announced the launch of Fidelity Digital Asset Services.
The latter will reportedly provide custody, as well as trade execution services for cryptocurrencies, geared toward institutional investors such as family offices, hedge funds, and market intermediaries but it won’t be available for retail investors.
We are currently serving a select set of eligible clients as we continue to build our initial solutions. Over the next several months, we will thoughtfully engage with and prioritize prospective clients based on needs, jurisdiction and other factors. – Said Fidelity in a statement.
Why Does it Matter?
A Bitcoin custody solution from a trusted source is one of the things that could bring institutional money in the space and hence help Bitcoin price
Novogratz has previously said that “the next move up is going to need custody from a trusting source.”
And while there are plenty of cryptocurrency exchanges and wallet services which have introduced a custody solution for Bitcoin and other digital assets, one coming from a recognized traditional industry giant such as Fidelity is likely to provide a lot more confidence in conventional institutional investors.
Fidelity’s Involvement With Digital Assets
Back in September 2018, Abigail Johnson, CEO at Fidelity, said that the company has a few projects in the space which are underway.
A little bit later, the President of Fidelity Digital Asset Services, Tom Jessop, revealed that the company doesn’t plan on building its own exchange but is rather focused on a Bitcoin custody solution.
Most recently, Fidelity Investments took part in a funding round of a new cryptocurrency exchange. The company, alongside NASDAQ Ventures, contributed to a total of $27.5 million raised for ErisX.
What do you think of Fidelity’s plans to launch Bitcoin custody services? Do you think this will help Bitcoin’s price? Share your thoughts down below!