Digital Assets: Fidelity Digital Assets Could Add Support for Ether in 2020

December 17, 2019 | Digital Assets, Latest News, News

Fidelity’s crypto arm has already done a lot of work on Ethereum.

Speaking in an interview with TheBlock, Tom Jessop, who is president of Fidelity Digital Assets, said the firm intended to support the Ethereum cryptocurrency in the New Year, according to cointelegraph.

“We’ve done a lot of work on Ethereum. We intend to support it in the New Year. We’re very led by our clients,” he said.

Fidelity Digital Assets currently offers cryptocurrency trading and custody services to accredited investors such as hedge funds, family offices, endowments, pensions, and other institutional investors.

Last month it received a license from the New York State Department of Financial Services. The state regulator provided permission for the crypto-arm of Fidelity Investments to offer new services. Therefore, the company can now offer cryptocurrency trading and custody services to companies domiciled in New York.

Other comments in the interview

What about the dozens of crypto funds which closed down in 2019? Jessop said the phenomenon was akin to the many start-ups that closed in the early days of the Internet. hence, he was not unduly concerned by it.

He added that disclosures resembled the early activity many industries, and was a healthy sign.

From the point of view of Fidelity Digital Assets, the closures did represent the loss of potential clientele. However, according to Jessop Fidelity was more interested in the right kind of client types and the nature of their interest in cryptocurrency as a better guidepost for growing business in the space.

“It’s just a classic, early stage will they make it or not,” he said.

Fidelity Digital Assets: About institutional crypto business

According to Jessop, institutions were hesitant to enter the cryptocurrency arena in a big way because of volatility and the lack of regulatory clarity. Another important factor was the absence of a track record on most cryptocurrencies.

However, Jessop believes that these problems will resolve with time.

[Related Story:  Digital Assets: Dutch Bank ING to Provide Safe Custody for Digital Assets   ]

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