Fidelity Investments will be launching a new company to hep handle crypto-investments for its institutional investors. The company announced on Monday that its new venture will help investors trade and store their digital assets such as Bitcoin and Ethereum.
The new company is called Fidelity Digital Asset Services and it will not directly operate a crypto exchange. It will simply connect with selected exchanges to help their clients find the best prices and ensure secured and fast transactions. The service provider will also store the asset-wallet private keys using a combination of enterprise software and vaulted cold storage.
Fidelity Investments manages over $7.2 Trillion in clients’ assets and it is making this move into the crypto space due to the recent sudden interest of clients in the digital currency market.
In an interview with Bloomberg, Tom Jessop who is an executive at Fidelity Digital Asset Services said that “if you look at the existing market infrastructure, it’s heavily skewed toward the needs of retail investors and early adopters of the space. The time is quite good for this announcement. We’ve seen a real acceleration of demand over the last couple of months.”
Fidelity is one of an increasing number of institutions taking interest in the cryptocurrency market. This new interest and foray by institutions into the market is seen by many as a good development as it would help direct more liquidity and see cryptocurrencies take their rightful place in the ambits of world trade and finance.