Posted 3 weeks ago | by Catoshi Nakamoto
One of the largest investment management organizations serving U.S. institutional investors, Fidelity announced that the institution will expand its digital assets and research team to investigate promising altcoins.
Fidelity Digital Assets, the crypto-focused arm of the $10 trillion asset manager Fidelity Investments, is preparing to add roughly 100 new employees to its staff to meet growing institutional demand for altcoins besides(BTC).
“[Last year] was a real breakthrough year for the space, given the interest in Bitcoin that accelerated when the pandemic started,” Fidelity Digital Assets president Tom Jessop told Bloomberg. “We’ve seen more interest in Ether, so we want to be ahead of that demand.”
Fidelity Digital has been offering its clients only Bitcoin-related custody, trading, and other services. However, that will all soon change as the institution moves to help its institutional investor clients to invest in promising altcoins.
“Bitcoin has been the entry for a lot of institutions. It’s now really opening up a window on what else is going on in the space,” Jessop explained, adding that both new and existing Fidelity customers have been showing a “diversity of interest” lately.
Fidelity Digital’s staff will expand by about 70%, according to the report. Jessop added that the firm is currently looking for technology and operations specialists in Dublin, Boston, and Salt Lake City. With an expanded team, Fidelity plans to offer new products and add more cryptocurrencies, such as Ethereum (ETH), to its offering for institutional investors.
Fidelity recently partnered with TP ICAP and U.K. banking giant Standard Chartered to launch a new cryptocurrency exchange. So, Fidelity is all in when it comes to crypto digital assets, Reuters reported.
Last week Bank of America, the second-largest bank in the U.S. by assets held, also announced that they would be entering in the digital asset market with their own research team, Bitboy Crypto reported. Citi Bank, JPMorgan, Morgan Stanley, Wells Fargo, Goldman Sachs, and many others have already established cryptocurrency research teams to better understand the industry or have directly invested into digital assets or infrastructure.
A number of investment banks have begun offering or are in the process of enabling sales of cryptocurrency to their clients. As Bitboy Crypto reported, under a deal through NYDIG and another service called Fiserv, it’s estimated 70% of U.S. banks can now offer their clients the ability to purchase digital assets with the focus on Bitcoin.
Last year, former U.S. Office of the Comptroller of the Currency (OCC) Brian Brooks who is now the head of Binance U.S. gave the ability for banks to custody cryptocurrency for their clients. However, many banks are choosing to use NYDIG for this process rather than go through the requirements to do so safely. Brooks on his way out also gave approval to crypto custodian Anchorage to receive a national trust charter making it the first digital asset bank in the country, as Bitboy Crypto reported.
Bitcoin is currently trading at [FIAT: $32,569.69] DOWN -2.3% in the last 24 hours according to Coingecko at the time of this report.