Category: GUIDES

The custody platform that has been the talk of the crypto town is down to its final testing stages. With merely a month left to its set launch date in March, the American Investment Firm, Fidelity’s cryptocurrency trading, and custody platform is apparently in its “final testing” process.

About Fidelity

It is one of the largest asset managers with $2.46 trillion in assets under management. Fidelity Investments operates a brokerage firm, manages a large family of mutual funds, provides fund distribution and investment advice, retirement services, wealth management, securities execution and clearance, and life insurance.  Announcement As per the announcement, the firm is currently providing services to a small, selected group of clients while it continues to build the platform’s infrastructure. The firm states:“Our initial clients are an important part of our final testing and process refinement periods, which will eventually enable us to provide these services to a broader set of eligible institutions.”Fidelity announced the development of a crypto platform with the launch of a new company, Fidelity Digital Asset Services, in October 2018. Fidelity then stated that the new company will offer custody and trade execution services for digital assets, targeting institutional investors like “hedge funds, family offices, and market intermediaries,” and will not, for now, be open to retail investors.In the announcement, Fidelity notes that its development team has been working with auditors in order to ensure regulatory compliance and “adapt existing operational processes” to the new cryptocurrency-oriented platform. 

Expected launch

Custody services are commonplace in the traditional finance sector, and offer investors a place to store assets like money, securities, and commodities like gold and diamonds so that they are not lost or stolen. Custody services differ from banks in that they are not allowed to use the stored assets for their own gain. Major firms like JPMorgan, BNY Mellon and Northern Trust offer custody services.Earlier this week, unnamed sources told Bloomberg that the crypto custodial service could launch by March 2019. Even in its initial report, the firm made it quite clear that its target audience were institutional investors like “hedge funds, family offices, and market intermediaries; and that its services won’t be accessible to retail investors in the initial phase. Fidelity made the announcement of the development of its crypto platform back in October last year, with the launch of its new company, Fidelity Digital Asset Services.In the update, the firm also revealed that its team has been working closely with auditors in order to ensure things like regulatory compliance. They are also working to “adapt existing operational processes” to the new cryptocurrency-oriented platform.Since custody services are quite common in the traditional financial space with the storage of assets like money, securities, and commodities like gold and diamonds; it will be interesting to see how it plays out with cryptos.Keep yourself updated with the latest crypto news globally. Connect with us at Fintech Crypto News - Latest news of Fintech & Cryptocurrency