The company’s Digital Asset Services will electronically transact cryptocurrencies on behalf of hedge funds, family offices, and other financial institutions. Services will be offered for the two largest cryptocurrencies, Bitcoin and Ether, however, the company plans to broaden its roster of assets in 2019.
The assets will be sourced from large over-the-counter crypto trading companies and will be held in custody in “cold storage” a means of storing coins offline.
Fidelitys new company could play an important role in helping the marketplace for the new asset class mature, as it draws more interest from traditional financial institutions. According to Business Insider, the company is one of the world’s largest investment managers with more than USD 7.2 trillion of assets under management, and it currently serves more than 13,000 institutions.
Fidelitys cryptocurrency push follows moves by other large financial companies in digital assets, including Intercontinental Exchange, the owner of the New York Stock Exchange, and CME Group.
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