- The platform is currently slated to trade Bitcoin and Ethereum
- The company says the addition of new coins is in response to their clients’ needs
- The entry of institutional players could boost the value of cryptos
Fidelity Investments is looking at the viability of adding the leading five to seven cryptocurrencies to its new Digital Asset Services platform. The platform currently trades Bitcoin and Ethereum.
Fidelity Might List the Top 4-5 Coins
The head of Fidelity Digital Assets Tom Jessop told reporters on the sidelines of the Block FS Conference in New York on Thursday, November 29, 2018, the company was likely to add XRP, Stellar, Bitcoin Cash, EOS and Litecoin. He stated:
“I think there is demand for the next four or five in rank of market cap order. So we will be looking at that.”
Jessop stated that the company initially picked the first two coins, Bitcoin (BTC) and Ether (ETH) courtesy of their market caps and brand recognition. He added that when adding new coins to their stable, they have paid close attention to their clients’ needs and whether the coins in question “are likely to be deemed as a security.”
The company unveiled Fidelity Digital Assets last month and according to the division’s head, they already have over 13,000 clients. He told CNBC that being a legacy leader; Fidelity is strategically positioned to leverage its experience and technology to strengthen the world of cryptocurrency. He added:
“We saw that there were certain things institutions needed that only a firm like Fidelity could provide. We’ve got some technology that we’ve repurposed from other parts of Fidelity. We can leverage all of the resources of a big organization.”
Fidelity, the fourth largest asset manager globally, has over $6.8 trillion in customer assets and a client base of over 27 million, whose entry into the world of crypto last month should not be taken lightly. It embracing cryptocurrency is a big deal since it will store and trade digital currencies for institutional clients whose appetite in cryptocurrencies is growing, unlike Bitcoin futures which are settled in cash.
The financial giant recently said they chose to enter the cryptosphere to satisfy the changing demands of its customers. The change could not have happened overnight and must be the result of meticulous research and planning.
Whereas the recent market crash has made many skeptics paint Bitcoin and other cryptocurrencies as an almost risky sub-culture, the entry of financial giants paints Bitcoin in particular and digital currencies in general as a serious investment.
Given the cryptocurrency market’s lackluster performance in the last few weeks compared to one year ago, it is expected that the influx of institutional investors will boost the value. As trusted names like Fidelity address custodian issues, crypto is likely to attract a new client base.