- The license will enable the financial giant to launch a digital currency platform to cater to institutional investors specifically.
- Industry experts predict that this move will result in a mass influx of institutional capital into the crypto space.
US-based financial services corporation Fidelity announced recently that it has secured permission from the New York State Department of Financial Services (NYDFS) to offer bitcoin trading and storage services. According to NYDFS, the investors can buy, sell and transfer Bitcoin on Fidelity’s crypto subsidiary – Fidelity Digital Assets.
Michael O’Reilly, Chief Operating Officer, said that the approval by NYDFS could help big investors more comfortable while investing in Bitcoin. He added:
The custody and trade execution services that we provide are essential building blocks for institutional investors’ continued adoption of digital assets. The designation as a New York trust company under the supervision and examination of the DFS builds on the credibility and trust we’re establishing among institutions and other market participants.
Lack of regulation, price manipulation and an increasing number of cases of fraud and wallet hacking have made Bitcoin appear as a risky investment. Hence, institutional investors have refrained from the Bitcoin industry. However, after financial giants including Fidelity and Intercontinental TD Ameritrade announced that they’d launch regulated Bitcoin trading products, experts predicted a mass influx of institutional capital into the crypto space. Tom Jessop, president of Fidelity Digital Assets, said in an interview:
We are seeing strong demand and greater diversity of client types. There are more traditional investors. When we started it was crypto funds and hedge funds.