Assets, Ethereum

Does Fidelity Have Ethereum?

Fidelity Investments, one of the world’s largest asset managers with more than $2.4 trillion in assets under management, has been quietly building a cryptocurrency business since 2015.

The Boston-based financial services giant has been hiring blockchain engineers and researchers, building out a trading desk for cryptocurrencies, and developing a digital asset custody offering.

Now, it appears that Fidelity is ready to take its cryptocurrency business public. The company is reportedly planning to launch a bitcoin and ethereum trading platform for institutional investors within a few weeks.

The news was first reported by Bloomberg, and later confirmed by CoinDesk.

Fidelity has been working on its cryptocurrency business for more than three years. In 2015, the company hired its first blockchain engineer, Alex Batlin, who had previously worked on Goldman Sachs’ digital currency project.

NOTE: Warning: Ethereum is a digital asset and may be subject to market risk. Investing in Ethereum involves a high degree of risk and may result in loss of funds. Fidelity does not provide investment advice, endorsement or guarantee with respect to any products or services offered by third-party providers, including Ethereum. Before investing, consider the risks and suitability of the product.

Batlin left Goldman to join Fidelity’s fintech incubator, where he helped the company build out its crypto trading desk and custody offering.

In 2017, Fidelity launched a bitcoin mining pool through its subsidiary, Fidelity Digital Assets. The pool allows miners to pool their resources and share in the rewards of mining blocks.

And last year, Fidelity announced that it was developing a digital asset custody offering for institutional investors. The offering is designed to provide “a secure way to store digital assets,” according to the company.

Fidelity’s move into the cryptocurrency space comes as other financial institutions are beginning to warm up to the asset class. JPMorgan Chase, for example, is reportedly considering launching its own bitcoin trading platform.

And Goldman Sachs is said to be exploring a cryptocurrency trading desk.

The institutional interest in cryptocurrencies appears to be driven by a belief that the asset class is here to stay. And as more institutional investors get involved in the space, it’s likely that we’ll see even more products and services aimed at them come to market.

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