Fidelity Plans to Offer Ether Custody and Hire More Crypto Staff

Texas could raise funds through NFT and harness 'abundant' energy to mine Bitcoin

Fidelity Plans to Offer Ether Custody and Hire More Crypto Staff By Hannah Perez

Fidelity anticipates increased demand for crypto assets among investors despite the recent price pullback in the market.

***

  • Fidelity Digital Assets will expand its crypto offering beyond Bitcoin.
  • The efforts seek to meet growing investor demand.
  • Fidelity already offers a Bitcoin investment option in 401(k) retirement accounts.

The asset management and pension fund giant, Fidelity Investmentsis bracing for the possibility of an increase in demand for cryptocurrency products in the coming months.

Fidelity Digital Assetsthe subsidiary of Fidelity Investments that offers institutional clients trading services and custody of Bitcoinsaid it plans to expand its cryptocurrency offerings and hire more dedicated fintech staff to meet growing demand for crypto assets.

The president of the subsidiary, Top Jessop, advanced the plans in an interview for The Wall Street Journal. According to the report, Fidelity Digital Assets plans to double its workforce with the hiring of 110 technology workers. Among them, engineers and developers with experience in blockchain. The ultimate intention is that the company can expand its commercial offer beyond Bitcoin.

Founded in 2018, Fidelity Digital Assets offers enterprise-grade custody and trade execution services for digital assets to sophisticated institutional investors such as hedge funds, family offices and market intermediaries.

See also  SEC Commissioner Hester Peirce: "Regulation for stablecoins will come sooner than later" - DiarioBitcoin

ETH offer and more personal crypto

Among the projects, the subsidiary of fidelity announced that it plans to start offering its clients trading and custody of ethereum (ETH), the second largest cryptocurrency by market capitalization.

According to Jessop, these plans include the construction of a infrastructure to offer ETH trading. The goal is to provide faster transactions and 24-hour business support, as well as tax reporting and compliance tools, the president said. Fidelity Digital Assets so far it has only offered support from Bitcoin (BTC).

The incredible energy around digital assets as an emerging asset class makes this an exciting time for anyone looking to advance a career in the space, including those working in more traditional areas within financial services.Jessop commented on the expansion and growth plans of the technology team.

The financial giant’s renewed interest in cryptocurrencies comes amid a bearish scenario for the market. Digital currencies have been highly volatile this 2022, with Bitcoin falling nearly 50% from its November all-time price high. The main altcoinsincluding ether, they have also recorded notable losses.

fidelity He doesn’t seem concerned about the recent market correction, even though the company has seen a slowdown in acquiring new customers, Jessop acknowledged. However, he said the firm is betting on a long-term game.

We are trying not to focus on the dips and focus on some of the longer term indicators, [como la demanda de los clientes]. We are trying to build an infrastructure for the future because we measure success over years and decades, not weeks and months.

Renewed interest in cryptocurrencies

The news comes just a month after fidelitywhich manages more than $4.5 trillion in assets, announced last month that it will allow U.S. investors for the first time to add Bitcoin to your 401(k) retirement savings accounts.

See also  FTX makes its way to offer Bitcoin and Ethereum futures to its users in the United States, reveals its president - DiarioBitcoin

If employers allow it, workers with accounts in fidelity they will be able to allocate up to 20% of their retirement savings to cryptocurrency. The service will be available from the end of this 2022, although some employers, including the enterprise software company, MicroStrategyThey have already started testing it.

Fidelity Digital Assets it now has about 400 clients, including investment advisers, hedge funds and asset managers, chief product officer Terrence Dempsey told the WSJ.


Recommended reading


Article by Hannah Estefanía Pérez / DailyBitcoin

Unsplash Image

WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

Leave a Comment

Your email address will not be published.