Fidelity Investments, one of the largest financial services firms in the world, expressed interest in digital assets in 2018 with the launch of their New York state-chartered limited liability trust company “Fidelity Digital Assets”. The aim of the new venture was to provide custodial and market execution services to institutional investors in the United States.
Although there are countless cryptocurrency exchanges at the moment, some of which with relatively high trading volume, such as Binance. These are, unfortunately, unequipped to serve institutional investors’ demands especially when it comes to liquidity. The cryptocurrency market remains in its infancy stages, as the current liquidity is enough for retail traders but extremely thin for institutions. For that reason, we’ve seen financial services firms from around the globe opening digital assets trading desks to serve their existing client-base who has so far been unable to deploy significant amounts of capital to the cryptocurrency market.
These services will now be spreading to a new continent as Fidelity Digital Assets expands into the European market. According to the president of the company, Tom Jessop, “Since launching Fidelity Digital Assets in the U.S. over a year ago, we’ve seen significant interest and engagement by the institutional community, which show no signs of slowing,”, he then added “We’re also encouraged by continued corporate and venture investment in market infrastructure companies as well as the entry of traditional exchanges into the digital assets ecosystem. These and other market indicators, alongside interest expressed from U.K. and European client prospects, indicate a market with increasing potential which gives us the confidence to expand the digital assets business geographically.”
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