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Forget Bakkt! Fidelity Will Bring Big Institutions To Crypto

Everyone talks about institutions in cryptocurrency. The popular belief is that when institutions start thinking into cryptocurrencies as a good assets class to put money behind, the prices will skyrocket and the new era of crypto will come. But there are three ways of institutions getting into crypto right now. First, the possible approval of Bitcoin ETFs supposedly will make institutional players hop into the market. While Bakkt, the new option that pretends to agglomerate the whole cryptocurrency market attention, has worked in front of everyone trying to get the attention of potential customers.
But now, a third option rises from an unlikely place: Wall Street. Fidelity Investments, one of the largest asset manager with more than 7 trillion dollars has declared that they will be offering cryptocurrency related services to institutions and startups to safely invest and store their digital assets. Being a Wall Street services giant, it is really surprising for them to focus on the cryptocurrency market, but according to Tom Jessop, their crypto manager, they were thinking about cryptocurrencies since 2014 when the industry was still at its infancy.
But Fidelity is not playing games: they have run a small bitcoin farm as an experiment for knowing how these cryptocurrencies are created and now they are employing 100 people in their crypto services division that will start functioning early next year. Jessup told that the motivation for this was the lack of a real enterprise-grade solution for institutions that want to really invest seriously in cryptocurrencies in the long run.
The first service that they will be focused on offering is custody, to have a safe vault for saving cryptocurrencies from outside attacks and hack and offer insurance in by any means the funds were to be compromised. the other service that they will offer is trading in the form of OTC facilitators, offering their clients pricing through third-party vendors with enough liquidity to involve in significant transactions.
The greatest thing here is that this solution has been born out of the Wall Street world, so institutional investors will be more likely to trust in an already solvent and big firm rather than in an incumbent outsider like Coinbase, that has made great efforts in this regard with mediocre results.
So while Bakkt and Coinbase were working in front of the people, Fidelity was working hidden to achieve the launch of a really interesting proposal for enterprises interested in cryptocurrencies as an asset class.

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