TheCryptoUpdates
Cryptocurrency News

Cryptocurrency News | Fidelity to extend Custodian Services to more Crypto Assets

Fidelity

Fidelity, the world’s fourth-largest asset manager is keen on extending their custodian services beyond Bitcoin to other crypto assets. The organization is earnestly evaluating demand for the top five cryptocurrencies and may also integrate support of other assets as well.

The nod from Tom Jessop, the head of Fidelity comes right at the time when major institutions like Goldman Sachs and State Street are eager on gaining regulatory clarity.

The Fidelity executive said at the Block FS conference in New York: “I think there is demand for the next four or five in rank of market cap order. So we will be looking at that.”

Catering to the Demands of Institutional Investors

Leading Financial institutions in the US are building infrastructures which will attract investors seeking to invest a minimum of $5 million in the crypto market. Interestingly, this is the minimum threshold on Coinbase Custody. The demand from institutional investors when it comes to crypto is uncertain. The only manner to get a significant value proposition is to evaluate the performance of existing custodians. These include Coinbase, BitGo and Fidelity.

It is not an unknown fact that the crypto market has lost 85% of it’s value. The demand for cryptocurrency has witnessed a steep decline since early January. However, Fidelity’s evaluation maintains a positive outlook and suggests changes in the custodian solution. It also throws light on the fact  that organisation is attracting enough investors to further enhance their scope.

State Street, an American financial services and bank holding company  also mentioned that it saw a substantial increase in demand towards cryptocurrencies as an asset class.

At a Conference in New York, Jay Biancamano, State Street’s Managing Director for digital product development and innovation, said: There is no sense of urgency on the part of our clients to move into these assets right now. When they do, we want to meet them there. There is a very high level of interest but no need to move because currently none of our clients are looking for us to house these assets in custody.”

Till the enterprise receives a green signal from the local financial authorities, State Street cannot begin their operations. Goldman Sachs is also facing the same plight and is eager on regulatory clarity before it can officially serve it’s customers as a cryptocurrency custodian.

Much Hated Regulatory Barrier

The regulatory barrier is preventing Goldman Sachs, State Street, Morgan Stanley, and other corporations from storing crypto assets on the customer’s behalf.

While financial institutions can take their own time to obtain regulatory approval, the companies strongly believe in the substantial crypto demand to justify their entry in the crypto market.

Related Articles

Bitcoin Hits Rock Bottom; Updates on XRP, Bitcoin and Others

Kesarwani

NFT Made Its Entry In Taobao Maker Festival

Concerns from cryptocurrency slump worsened with Goldman retreat

Kesarwani