Fidelity Investments Inc.,the American multinational financial services corporation based in Boston has compltly launched its cryptocurrency custody service.
The investments firm CEO, Abigail Johnson, reported the company advancements in an interview for Financial Times on 18 October saying that the company is ready to launch fully their custody service after a long year preparation and creation of a large user base.
Fidelity launched their custody service this year in the first quarter as an enterprise-grade service which nobody is offering and pointed to the potential this service could have, saying:
“There are people out there with significant amounts of wealth in cryptocurrencies, probably bitcoin, and they’re looking for somebody to hold those coins for them because in the event of their passing — which is going to happen at some point or another — you’ve got to have a plan to be able to get those coins to somebody else,”
Of course, people store their crypto on exchanges like Coinbase for example, which is also offering a custody service, but a lot of people never heard about Coinbase Said Johnson, adding:
“is still a company that most people had never heard of, and they don’t have the existing relationships with the independent advisers.”
Talking about trading Fidelity seems to be prudent and have no intentions offering trading on traditional retail exchanges and the main purpose of that is to protect their users.
In a recent interview, Kathleen Murphy, President of Fidelity Personal Investing was asked about when users will be able to trade crypto on the Fidelity platform, she responded:
“You know, we’re really careful about that. So while we embrace crypto in terms of trying to understand it and be innovative and thoughtful… We’re also very careful about where we offer those types of things, so they’re not offered broadly on the retail platform. We want to be very careful about making sure that investors who really aren’t institutional investors […] don’t make a mistake with cryptocurrency.”
In spite of the fact that there is still a lot of skepticism about cryptocurrencies about their use in many sectors of the financial services industry, Ms. Johnson is certain that there is significant potential in the sector, saying:
“It’s not going away. As long as the value is there, people will look to preserve that value,”