Expect our crypto-products by year end: Fidelity Investments
Fidelity Investments, the world’s fourth largest asset management firm, has set the crypto world abuzz with their latest development. Abigail Johnson, CEO of Fidelity Investments, said that the company is currently working on a range of blockchain and cryptocurrency-oriented products and services, which are expected to be launched before this year ends.
Johnson made the disclosure at the recently held Boston Fintech Week, though she did not elaborate on the details regarding what kind of products the company was working on.
“We’ve got a few things underway, a few things that are partially done but also kind of on the shelf because it’s not really the right time. We hope to have some things to announce by the end of the year,” said Johnson, referring to the future prospects of the investment manager.
Several high-profile financial institutions have looked at the crypto-industry as the future of financialization, but have shied away from any public association due to the murky regulatory environment surrounding the industry and the volatility of digital assets.
Goldman Sachs and Morgan Stanley have been interested in the cryptocurrency field for a while. Goldman Sachs had even floated the idea of a dedicated crypto-trading desk, though the banking giant later stated that “such plans are not a priority right now”.
Despite the growing publicity around the digital assets industry, the cryptocurrency market’s total value is well below $300 billion. Data from CoinMarketCap showed that the current valuation stands at $199.28 billion. However, Fidelity has been a strong supporter of the crypto movement and has openly signaled its enthusiasm for the same.
Earlier in June, there was talk about Fidelity Investments working on a cryptocurrency exchange. There were also rumors that the company was looking to hire a fund manager to run a new crypto-fund in the same month. However, these rumors were never confirmed by the company.
Interestingly, Fidelity Charitable – the company’s charitable wing – had raised close to $6 million in donations via cryptocurrency in the first half of last year.
Johnson clarified that the company has been exploring the technology and modifying developments based on the requirements of the market.
She further said, “What we started with was building a long list of use cases for either Bitcoin, Ethereum, other cryptocurrencies, or potentially just raw blockchain technology. Most of them have been scrapped by now or at least put on the shelf. The things that actually survived were not the things I think necessarily we expected. We were trying to listen to the marketplace and anticipate what would make sense.”
Even as cryptocurrencies and their adoption grow across the world, Fidelity Investments believes that financial services will still take precedence over digital assets.
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