Fidelity’s Crypto Trading And Custody Service Platform Enters “Final Testing” Phase
Financial services provider and major global asset manager Fidelity is undertaking the “final testing” for its highly anticipated digital asset custody and crypto brokerage platform, the firm said in a blog post published on Thursday.
The company first announced plans for the launch of its Fidelity Digital Assets platform in October 2018, promising to unveil a unit that would provide institutional clients access to crypto trading and custody services.
On Thursday, the company’s blog post noted that the on-boarding of “a select set of eligible clients” had been done as testing and fine-tuning of the Fidelity Digital Asset Services (FDAS) entered its final stages.
“Our initial clients are an important part of our final testing and process refinement periods, which will eventually enable us to provide these services to a broader set of eligible institutions,” the firm said.
An earlier report by Bloomberg had claimed that Fidelity would announce an official launch of its new business unit in March.
Although the company’s update did not confirm or deny the report, it is in line with an earlier statement from the firm stating that crypto platform would launch sometime in the first quarter of 2019.
The company’s blog did note that the firm will “over the next several months,” engage prospective clients on the basis of specific needs, jurisdiction or other such factors.
Trust is one of the pillars the firm wants to erect as the platform moves towards going live, and has thus noted that prospective clients have expressed a “clear need for a trusted platform provider.”
Fidelity wants to create custody and trading solutions that exceed existing solutions in terms of standards, providing security and transparency.
The company’s auditors are reportedly working with various teams in compliance and risk, refining its existing policies as it prepares to “to set new benchmarks” and ensure that its products deliver for the clients.
Among Wall Street firms that have moved to offer crypto services, Fidelity ranks as one of the largest with a clear target.
The firm, with over $7 trillion in client assets under management and over 13,000 financial services dealings, could prove to be the magnet that pulls large-scale institutional investors into crypto.
The nascent crypto industry continues to wallow in the frigid depths of a price meltdown that has seen over $600 billion wiped from the crypto market in the last one year.
But with firms like Fidelity and NYSE’s Intercontinental Exchange set to launch products, belief is that investor confidence will return.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.