Fidelity Investments Plans to Launch its Bitcoin Custody Service in March
By Luke Flowers - Crypto Investor
Fidelity Investments are set for a launch date in March for its Bitcoin custody service. The Boston-based multinational financial services company has plans to move forward into Bitcoin investment. The service hopes to help advise institutional investors on where to buy Bitcoin and to ease them into trading cryptocurrencies.
It was announced in October 2018 that Fidelity would have a range of crypto products designed for large investors that may want over-the-counter Bitcoin. The first product to be available will be Bitcoin storage – this was suggested by employees of three companies that are in talks with Fidelity over the last few weeks; although they have asked not to be named as the plans are still top secret. The next product is likely to be Ether custody.
“We are currently serving a select set of eligible clients as we continue to build our initial solutions,” Fidelity commented on Tuesday 29th January. “Over the next several months, we will thoughtfully engage with and prioritise prospective clients based on needs, jurisdiction and other factors.”
As there is still a risk with digital currency being stolen, the practice of custody that is common in the financial market when dealing with stocks usually involves a third party. This helps reduce the security risk when crypto buying. There have been start-ups that have offered a safekeeping service, but Wall Street professionals would prefer to work with larger financial services companies.
Abigail Johnson, Fidelity’s Chief Executive Officer, has been an advocate of digital assets unlike most of her competitors. The company began to mine Bitcoins in 2015 and is one of the largest providers for retirement savings and mutual funds. As an established company it hopes to win over and influence customers to buy cryptocurrency and start trading.
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