Fidelity sets date for launch of Custody Service
Wall Street may finally have the services they are looking for...
Fidelity Investments announced yesterday that they would be targeting a March launch date for their cryptocurrency custody service.
This was first reported by Bloomberg and can be seen here:
The custody service is specifically designed to cater to institutions and high net worth individuals.
Cool, what's a custody service?
A custody service is where someone holds investments on the behalf of their clients.
Basically, what a traditional brokerage does for other types of investments.
This becomes all the more tricky when cryptocurrencies are involved due to the large amount of fraud and hackings that have taken place in the space.
Investors don't really have a safe and reliable place to store their investments.
With Fidelity launching their platform, they are hoping to change all that.
Why does this matter?
Up until recently the crypto space has been predominately retail investors.
Very few institutions have been involved.
That is likely due to several factors, but a very big one has to do with the ability to adequately store their investments, or a lack there of.
With the name recognition and resources that a company like Fidelity has, they have a very good chance of building something that institutions will trust should they choose to invest in the crypto space.
And as you know, trust is a very big deal.
Once it launches in March we will have an idea if there really is much interest from institutional investors because now they will have the required investing tools.
I would not be surprised to see this cause a run up in crypto prices as we get closer to launch date.
Stay informed my friends.
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I wonder how long before they allow 401k investing. I don't want to put much of my 401k, but it would be fun to be able to put 1% of my 401k into Bitcoin at these prices, and maybe add 1% if it drops again.
You are not the only one that wants to do that. I think most people would like a 1-5% allocation in bitcoin. Somewhere in that range.
What happened to Bakkt as Fidelity has invested in that as well? I know their launch was delayed and the competition from Coin Flex coming sometime in February. Fidelity doing this in March is going to make a perfect storm for the markets.
Bakkt said they filed all the necessary paperwork with the CFTC and are now waiting on a decision from them. They are anticipating the CFTC approving at some point within the next few months.
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Good news indeed!
Such a great article, i posted about this very bullish news (an hour ago or so). Same thoughts. Institutional money coming.
Hopefully there is actual interest there.
Fidelity company is a big whale in a deep waters. They control a lot their costumer assets and total value (USD) trillion's. They saw value in crypto's so as we talked earlier -Just need to have some patience and we will see how its gonna be.
Yep I think so as well. They have the assets and the clients, now hopefully these clients actually have some interest!
Hopefuly news, thanks for the post 😊
Hopefully they don't get delayed like everyone else.
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This should be good for the space.
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I would not be surprised if we rally in the weeks leading up to the launch.
Good to have a trusted brand as Fidelity in the space... adoption is coming.
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Helps legitimize the asset class.
I certainly hope it has some traction as it could bring new products and options for investors. Although they are catering to large amounts, I am sure benefits will trickle down to retail investors.
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Hey, if prices go up it helps even the smallest investors. :)