Galaxy Digital Will Be First Custody Client of Fidelity Digital Assets
Multinational financial services powerhouse Fidelity has launched Fidelity Digital Assets, a new “full-service” platform for institutions focused on cryptocurrency custody, execution services, and more. Michael Novogratz has confirmed his crypto bank Galaxy Digital will be the firm’s “alpha crypto custody client.”
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First Up, Galaxy Digital
Fidelity, which managed nearly $2.5 trillion USD in assets as of 2017’s end, announced today its launch of Fidelity Digital Assets, a new platform aimed at servicing the gamut of institutions’ digital asset needs.
— Fidelity Digital Assets (@DigitalAssets) October 15, 2018
The upstart says they will bring “institutional solutions to a new asset class” — a bold assertion on Fidelity’s part that cryptocurrencies, and security tokens in extension, are here to stay.
Formed out of a Fidelity Labs incubator project, the new platform is set to offer institutional firms with onboarding support, “multi-venue trade execution capabilities,” and “vaulted deep-cold storage.”
Fidelity’s clout in the traditional finance world could make its Digital Assets the go-to platform for traditional financial firms that would prefer a familiar touch in making the dive into the cryptoeconomy.
Beyond traditional finance, Galaxy Digital, Michael Novogratz’s first-mover cryptocurrency bank, will be Fidelity’s first crypto custody client, per Novogratz.
— Michael Novogratz (@novogratz) October 15, 2018
Galaxy Digital’s embrace of Fidelity Digital Assets may make the decision even harder for other crypto enterprises trying to choose between Coinbase Custody, Bakkt, and the ever-widening list of institutional-minded cryptocurrency services.
Comes After Reports Fidelity Was Exploring an Exchange
In June 2018, a Fidelity job posting for a DevOps system engineer position focused on helping “engineer, create, and deploy a Digital Asset exchange to both a public and private cloud,” among other similar postings, indicated the financial services multinational was building a cryptocurrency exchange.
Beyond that, it’s been no secret in recent months that Fidelity has had an eye toward cryptocurrencies. In early 2017, the firm confirmed they had their own modest bitcoin and ether mining operations.
A few months after that, Fidelity also began letting their clients view their cryptocurrency portfolios from within their Fidelity account dashboards.
“I’m a believer,” Fidelity chief operating officer Abigail Johnson said of the space in 2017. “I’m one of the few standing before you today from a large financial services company that has not given up on digital currencies.”
Upon today’s news, it’s clear Johnson has kept that approach going strong in the wider Fidelity ecosystem between then and now. Which firms will embrace Fidelity Digital Assets, and when, remains to be seen, but it will be a key thread to track in the cryptoverse going forward.
What’s your take? Are you surprised by Fidelity’s move? Or are you more nonchalant about it? Let us know what you think in the comments section below.
Images via Fidelity Digital Assets, Pixabay