Fidelity Investments Reveals Plans For Crypto-Related Products By End Of Year
Fidelity, the investment giant with trillions of dollars under management is reportedly looking to offer one or more crypto-related products before the end of the year.
Despite the difficulties crypto markets have endured in 2018, optimism still abounds, and belief is that a full-scale recovery is around the corner.
The latest set of positive news comes from Fidelity, the investment giant with trillions of dollars under management. Fidelity is reportedly looking to offer one or more crypto-related products before the end of the year.
Mainstream investment on the rise
Many mainstream investment giants, including BlackRock and Morgan Stanley, have recently expressed interest in crypto holdings.
Fidelity Investments, which is ranked fourth in the world among the largest asset managers, has given the clearest indication so far regarding its plans about cryptocurrency.
Along with other high profile firms, Fidelity has been exploring the idea of offering crypto-related products.
It now appears the firm is ready to offer such products and services as early as Q4 2018, according to CEO Abigail Johnson.
The emergence of an investment company with over $2 trillion in assets under management getting involved in crypto represents a much-needed boost for blockchain and the digital asset industry.
Johnson revealed the plans during an interview at the recently concluded Boston Fintech Conference.
Though she declined to provide details, Johnson said the financial services firm had several projects still being developed, while others were “partially done” but the company is waiting for the “right time” to introduce them to the public.
When asked when more details would become available, she said:
“We hope to have some things to announce by the end of the year.”
Exhibiting solid interest
Several Wall Street firms and multinational companies have, over the years, expressed interest in blockchain technology and cryptocurrency. While a few have made substantial progress towards implementation, many have chosen to perform preliminary research only, stopping short of launching any products or services.
Fidelity’s latest foray has the crypto community looking forward to improvement in the market. Institutional investment is seen as one of the biggest requirements to spurring mass interest and taking crypto mainstream.
Many of the firms and institutions that have explored digital assets have often cited the lack of regulatory clarity as one of the main barriers to entry.
That hasn’t stopped traditional financial companies like JP Morgan, Goldman Sachs, Morgan Stanley, and BlackRock from exploring options to launch their own crypto-related services in the last few months.
Fidelity’s bold announcement will no doubt ripple through to other investment firms, and we are likely to see announcements of many crypto-related products within the next year.
Fidelity’s crypto history
This is not the first time the Boston-based investment firm has embraced distributed ledger technologies. The CEO confirmed the longstanding belief that Fidelity is serious about cryptocurrency and its underlying blockchain technology.
She said that the monolith started by establishing possible “use cases” for crypto assets like Bitcoin and Ethereum, with the firm’s executives exploring the feasibility of launching customized blockchain-based projects.
In 2015, Fidelity launched a charitable arm to provide nonprofit organizations the ability to process donations made in Bitcoin, a venture that has proved successful.
The firm has also benefitted from crypto mining, having launched a Bitcoin mining project far in advance of the price boom of 2017.
Rumors that the company is planning to open a crypto exchange have elicited hype but remain unconfirmed.
It’s been a process for the firm, possibly the reason any revelation about a future crypto product is attracting a lot of interest. Johnson said:
“We were trying to listen to the marketplace and anticipate what would make sense.”
There is no doubt that Fidelity will establish a greater foothold in the crypto industry soon, possibly as early as Q4 as revealed by its chief executive.
However, regulatory concerns remain and whether the SEC opens the floodgates with a favorable decision on one of the most anticipated crypto product- the VanEck-SolidX Bitcoin ETF – remains to be seen.