Fidelity has announced the launch of its own subsidiary specifically targeted at the virtual currency sector.
FDAS, Fidelity Digital Asset Services, which has as its object the custody and management of cryptocurrencies for institutional operators, as well as the management of their trades. The service was launched in partnership with FCAT, the Fidelity Center for Applied Technology.
Fidelity CEO said: “Our goal is to make digitally-native assets, such as bitcoin, 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”.
Institutional investors such as Mike Novogratz applauded Fidelity’s move because they believe it will open the door to professional and institutional operators and therefore to the entry of “Big Money” in the virtual currency sector.
Fidelity has 13,000 professional clients, from large institutions to family-run companies. For this reason, it expects great success from this new activity, so much so that the FDAS was founded with as many as 100 employees.
The service on which the company will focus is above all that of safe cold storage, which is seen as strategic especially towards those institutions that consider hacker attacks very dangerous and do not want a direct responsibility for any losses of the assets managed.
Currently, the market for cryptocurrency investment funds is starting to have interesting numbers, with 10 billion dollars invested in about 370 different operations. In fact, other operators are about to enter this market, including Coinbase, Gemini, Nomura and Ledger.
Many expect that the first half of 2019 will see a generalised interest of professional investors in cryptocurrencies, perhaps following the approval of ETFs on bitcoin.
In the past, Fidelity had worked with Coinbase to offer virtual asset services to its customers and had even carried out experiments in the mining industry.