Sunday, September 22, 2019

Fidelity Investments Says Cryptocurrency Custody Platform is in Final Testing

Fidelity Digital Assets, a subsidiary of Fidelity Investments on January 31 announced the final testing of their cryptocurrency custody platform and trading venue. According to the financial services provider, only selected clients are currently testing the platform. With time, customers from eligible institutions will be able to use it.

Fidelity Investments Confirms Launch on a Crypto Custody Platform

Fidelity Digital Assets has confirmed the rumors that Fidelity Investments will be launching a cryptocurrency custody platform. BTCNN on January 31 hinted that the financial services provider plans to launch a Bitcoin custody service in March. The news was based on Bloomberg’s report that the company is targeting large investors with the custody service.

However, Fidelity has not put a stamp on the launch date. They are also yet to confirm the cryptocurrencies that will be supported. Alternatively, the company outlined that the said platform is focused on institutional investors who have been seeking a platform for securing and trading digital assets.

Platform Built With Robust Set of Technical and Operational Standards

According to Fidelity, the new platform has been built with a “robust set of technical and operational standards” in order to meet the expectations of institutions. They added that through their conversation with several institutions, they were able to tell that there was a need for a trusted platform provider that will allow cryptocurrencies to be used in a meaningful way.

Therefore, the custody and trading venue is currently being used by only selected clients. At a later time, customers from eligible institutions will be incorporated. The financial services provider also stated that its aim, is to provide these clients with a secure platform, and one that takes away the unclear nature of trading virtual currencies.

Related Article:  Bank of England's Senior Adviser Says Cryptocurrencies Lack Value and are Slower

Fidelity also said:

We realize Bitcoin is not the first form of digital cash, but we recognize the transformative potential it has created

Large Investors May Now be More Willing to Enter the Crypto Market

As BTCNN earlier reported, a platform of this kind might make large investors less reluctant to enter the crypto market. The latter can be attributed to a reputable financial organization managing their digital assets unlike the case of a startup. Moreover, Fidelity is known to have links with over 13,000 financial institutions.

On January 29, BTCNN also reported of Wyoming’s introduction of a bill that will allow approved banks to keep custody of virtual currencies. The bill proposed that these banks should be licensed by the U.S. Securities and Exchange Commission (SEC). Also, financial institutions that offer such services will only act as a broker-dealer, investment adviser, or investment company.

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