Fidelity Investments, a Boston-based financial services company, goes all out by launching its full-fledged cryptocurrency custody service. The development was revealed by the CEO of the firm, Abigail Johnson, in a Financial Times interview.
According to Johnson, Fidelity Investments spent a year working on the project. She added that throughout the development period, the firm had focused on accumulating clients as well.
Exploring the potentials of a crypto custody business
Fidelity Investments first announced the initiative of building an enterprise-grade crypto custody business last fall. The new service, according to the initial announcement, would target hedge fudges, financial advisors, and family offices.
Johnson also admitted that the firm is aware that the crypto custody industry is still in its infancy; however, she emphasized that the market shows massive potentials. She noted that there are many people out there with enormous crypto holdings who are looking for trusted entities that could hold their coins should something happen to them. It is inevitable, and these people need to have plans in place.
Notably, Coinbase, the California-based crypto exchange, launched a crypto custody service in July 2018. The goal is to enhanced crypto assets’ security, which, according to the exchange, is the number one factor that drives institutional investors away. After a year in operation, Coinbase shared that its custody service is holding crypto assets on behalf of over 120 customers from 14 different nations.
As a competitor, Johnson claims that Fidelity Investments has the edge over Coinbase. Aside from saying that the crypto exchange is still in the process of growing its customers’ base, she emphasized that Fidelity Investments has strong relationships with independent advisers.
Client protection as the utmost priority
Just recently, Fidelity Investments’ personal investing president Kathleen Murphy said that while the company is open to exploring the benefits of cryptocurrency, they are taking a cautious approach for the utmost protection of their clients. Thus, they are not offering crypto assets on retail trading platforms.