The US asset management institution, Fidelity, via its subsidiary Fidelity Digital Assets, has been given the green light by New York regulators to offer crypto services (trading and custody) institutional investors based in the state of New York.
The US asset management institution was already operating in the US and mostly claimed crypto funds or hedge funds as clients. With this license, the US manager hopes to reassure more traditional institutional investors, family offices, investment funds among others. Fidelity isn't the only one in this slot.
To operate as LLC
Obtaining this authorization for Fidelity Digital Assets enables it the right "to operate a limited liability management company in the growing cryptocurrency market within the State." The service offered by Fidelity Digital Asset includes the purchase, sale and custody of digital assets.
The offer is mainly for institutional investors. Founded in Boston, Massachusetts, the firm, which manages nearly $3 billion in assets, aims to roll out its custody offer and dedicated cryptocurrency trading like Bitcoin on Wall Street.
Adoption of digital assets by IIs
"The transaction retention and execution services we provide are essential to the continued adoption of digital assets by institutional investors. The designation of a New York trust company under the supervision and review of DFS is based on the credibility and trust we build between institutions and market participants," said Michael O'Reilly, COO of Fidelity Digital Assets.
More and more recognized financial institutions are interested in the world of bitcoin, including the Intercontinental Exchange, the parent company of the NYSE, with its platform Bakkt. Several large crypto exchanges like Coinbase are also targeting institutional investors.
No Bitlicense though
Although the company does not have the famous Bitlicense, the holy grail for all crypto companies wishing to operate in the state of New York, this authorization is much broader and allows it to carry out financial advice. Tom Jessop, president of Fidelity Digital Assets said that other cryptocurrencies will be available (in addition to bitcoin and ether) in 2020 and that "opportunities abroad" are being considered.