Fidelity Investments, a company which manages $2.5 trillion in assets, is expected to launch their Bitcoin custody service in Q1 of 2019.
A report from Bloomberg has revealed the Boston-based firm will launch their custody service in March.
Fidelity Investments is the world’s fifth largest asset management firm, with roughly $2.5 trillion under their care. The firm’s Bitcoin custodial project is aimed at institutional investors to expand its ‘Fidelity Digital Asset’ service.
The company first unveiled its plans to launch the custody service back in October 2018. Its interest in cryptocurrency arose from the company’s Blockchain Incubator project back in 2013. In 2015, it began accepting donations in the form of Bitcoin and is thought to have raised $70 million by 2017.
In the past, Fidelity Investments has toyed with the idea of entering the crypto mining market.
CEO Abigail Johnson believes that Fidelity Digital Assets will appeal to Wall Street, and has previously stated, “Our goal is to make digitally-native assets, such as Bitcoin, more accessible to investors.”
Fidelity Investments will offer a range of crypto-related products such as hedge funds for large investors. To begin with, only Bitcoin services will be offered, but Ether is expected to follow shortly.
The company has recently released a statement claiming it is “currently serving a select set of eligible clients” to build its initial solutions.
The statement reads: “Over the next several months, we will thoughtfully engage with and prioritize prospective clients based on needs, jurisdiction, and other factors.”
It remains to be seen whether the crypto space will welcome Fidelity Digital Assets, particularly considering that third-party custodial ownership means crypto traders and investors must trust a third-party to look after their funds.
Bitcoin, the original cryptocurrency, was created to enable self-sovereignty over funds – something third-party custodial ownership contradicts. However, a behemoth like Fidelity Investments taking avid interest in the space is certainly not a bad thing.
For more information and guides from Coin Rivet, click here.