Fidelity Launches Crypto Services in Europe, Citing 'Significant Interest'

Fidelity Investments is expanding its crypto services to European clients after seeing the increased potential in this market. This expansion is built on the U.S. crypto business company. "We have seen significant interest and involvement by the institutional community, which shows no signs of slowing down," the company revealed.

Enter the European Crypto Market

Fidelity Investments announced on Tuesday the establishment of its new entity to serve European clients who invest in crypto assets. Fidelity Digital Assets Ltd. will offer digital asset storage and trade execution services to investors such as hedge funds, family offices and market intermediaries. Guard services consist of cold storage rooms and "multi-level physical, operational and cyber controls," the details of the announcement, adding that trade execution services will give clients access to various sources of liquidity.

Tom Jessop, head of Corporate Business Development for Fidelity Investments and president of a subsidiary of US digital assets, explained that the group was "driven by continued corporate and venture investment in market infrastructure companies and the inclusion of traditional exchanges into the digital asset ecosystem. , "He explained:

These and other indicators, together with expressed interest from the UK and European client prospects, indicate a market with increasing potential that gives us confidence to expand the digital asset business geographically.

According to the Financial News publication, the new entity was incorporated in the UK on December 16, but currently does not have any regulatory permission. Michael O'Reilly, COO of a subsidiary of US digital assets, clarified to the publication: "Obviously we will ensure that we comply with the UK or any other license required, but at this point our understanding is that we do not need additional licenses to do this is in England "


Building on the U.S. Crypto Business

Fidelity Investments claims to have more than $ 7 trillion in client assets in administration and more than 1.3 million trades are processed every day, and become one of the largest financial services in the world, according to its website.

The company began exploring cryptocurrencies and blockchain technologies in 2014. In 2018, it launched Fidelity Digital Assets, a subsidiary to provide crypto services to institutional investors based in the U.S.

The New York State Department of Financial Services (DFS) in November, which allowed it to start operating as a limited liability trust company in the state of New York.

The Bitlicense regulator detailed at the time that the company had authorized the company "to provide virtual currency containment and execution platforms, where investors and individual institutions can safely store, buy, sell and transfer bitcoin."

In addition, O'Reilly told Financial News that London was the right base for Fidelity's European branch of digital asset services despite Brexit uncertainty. "Both the fintech and crypto communities in London are strong and that is evident from what we see from client requests or client requests," he said. While Fidelity only supports bitcoin at this time, it hopes to add other digital assets by 2020, COO revealed, noting that the company will also monitor expansion opportunities in Asia.

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