- Fidelity Digital Assets (FDA) CEO said that adopting institutional crypto entails many hurdles.
- FDA focuses on hedge funds, family offices, pensions and other institutional investors.
Tom Jessop, the president of Fidelity Digital Assets, recently announced plans to add support for Ether (ETH) in 2020. Fidelity Digital Assets is a subsidiary of United States financial services giant Fidelity. Jessop said that the support will be added if there is sufficient demand for it. In an interview with the news outlet TheBlock, he answered some questions about the firm. On being asked if there’s a possibility to add support for Ether in the future, he said:
We’ve done a lot of work on Ethereum. We intend to support it in the New Year. We’re very led by our clients.
Jessop stated that adopting institutional crypto entails many hurdles like price volatility, lack of regulatory clarity, and absence of track record. However, he believes that the problems will decrease with time:
Meaning like, “How do I know that if I buy this thing, it’s gonna be around tomorrow? Like what indicia of durability or longevity do I have based on the fact that the history of this asset is 10 years old?” I think many of these things solve themselves with time.
Fidelity’s cryptocurrency trading and custody platform was launched in March with a select group of clients. It focuses on hedge funds, family offices, pensions, endowments and other institutional investors. The platform is not for retail investors. Kathleen Murphy, Fidelity’s personal investing president, previously stated that the firm does not offer cryptocurrencies on retail trading platforms. This is done to protect its clients from the unsafe market.
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