American investment firm Fidelity today confirmed that it is working on a cryptocurrency trading platform and custodian service which is currently in the “final testing” phase.
Last October, the Boston-headquartered firm set up a subsidiary called Fidelity Digital Asset Services (FDAS) to enter the business of digital assets. Although rumors already surfaced at the time regarding its plans to launch a crypto trading platform, it was not officially confirmed until now.
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According to the announcement, the platform will serve the institutional investors and currently, the investment giant is working with “a select set of eligible clients” to bring up the final solution.
“We are currently serving a select set of eligible clients as we continue to build our initial solutions. We’ve established a robust set of technical and operational standards at a level that institutions have come to expect from Fidelity,” FDAS noted in its official blog post.
The firm also revealed that it is working with the auditors to refine its “policies and procedures, adapt existing operational processes, and to set new benchmarks for this aspect of cryptographic and blockchain-based finance.”
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Bloomberg recently revealed that the investment giant with AUM of $7.2 trillion is planning to launch its custodian service as soon as the coming March. Fidelity, however, did not confirm any such claims.
Fidelity started cryptocurrency mining in 2015, and surprisingly its leadership team was optimistic about the new industry, unlike other financial giants. Tom Jessop, the executive in charge of FDAS then believed that many institutional investors are interested in the new asset class, however, the lack of any “trusted platform provider” is keeping them away from the market.
“Over the next several months, we will thoughtfully engage with and stage prospective clients based on their needs, jurisdiction, and other factors,” FDAS added.