Fidelity Digital Assets Secures New York State License

Boston-based firm secures New York’s “okay”

Fidelity Digital Assets 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.

The company can now offer cryptocurrency trading and custody services to companies domiciled in New York. The firm says that it will target institutional investors. It will shy away from retail investors such as Robinhood and E*trade.

We have experienced a high-interest level from these firms and anticipate that their increased involvement in this industry would enable more activities and development across the spectrum the firm said on its website.

About Fidelity Digital Assets

Meanwhile, the crypto-arm launched in 2018. The company further combines the parent firm’s asset administration knowledge with digital asset security.

The new license also allows the arm to operate as a Limited Purpose Trust Company. This is a much broader classification than the traditional BitLicense offered by the state. This will allow the company to provide professional advice to its clients.

“We are seeing strong demand and greater diversity of client types,” Tom Jessop, president of Fidelity Digital Assets, said in a Reuters interview. “There are more traditional investors. When we started it was crypto funds and hedge funds.”

Related: Fidelity Investments Eliminates Commissions

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.

Alt Insights

December 6, 2019

SIFMA: US Economy Will Expand in 2020 But at a Moderate Pace

SIFMA: US Economy Will Expand in 2020 But at a Moderate Pace

Latest Alternative Investment News

Bank of America: ETF Assets to Go 10X, Hit $50 Trillion in 10 Years
December 13, 2019     Investments, Latest News, Liquid Alternatives, News

ETF assets could hit $50 trillion by 2030, a figure that is more than ten times current levels, according to Bank of America. The bank also said this week that…

The Domino Effect From This Chinese Bond Default
December 12, 2019     Alternative Investments, News

Mutual funds bleed after Peking University Founder Group Co.’s bond default. Peking University Founder Group Co.’s bonds crashed by 70% the day after the Founder Group defaulted on a 2…

Another Day, Another Hedge Fund Plans to Return Investor Capital
December 12, 2019     Hedge Funds, Investments, News

Everett Capital Advisors will return capital to investors, according to a new report from Bloomberg. The hedge fund of Kelly Hampaul had a rather solid run. Founded in 2015, the event-driven…

Digital Assets: Jay Clayton – SEC Hastens Slowly on Digital Assets
December 12, 2019     Digital Assets, Regulations

Jay Clayton said in testimony to the Senate that the SEC was taking a measured approach to regulation of digital assets. Jay Clayton was very positive on the prospects of…