Fidelity launches Ethereum custody and trading services

abdelaziz Fathi

Fidelity Digital Assets, the cryptocurrency unit of Boston-based Fidelity Investments, plans to launch Ethereum custody and trading services, citing high demand from institutional investors.

Fidelity is offering customers exposure to ether “using the same model provided for bitcoin investments today.” “With the Ethereum Merge completed, many investors are looking at Ethereum through a new lens,” Fidelity tweeted on Wednesday.

This move also provides a fresh regulated on-ramp for those looking to enter the crypto space, and comes shortly after the Ethereum network’s long-promised shift from an energy-intensive proof-of-work consensus mechanism to proof of stake. Ethereum’s environmentally-friendly Merge has drawn the attention of industry participants, Fidelity notes in the memo, with many paying closer attention to the blockchain’s growing potential.

The brokerage broadens its crypto offerings in the face of a recent slump in the market. Earlier this month, Fidelity launched an Ethereum Index fund, which has already raised $5 million since sales began on Sept. 26.

Fidelity’s cryptocurrency unit already features institutional-grade, crypto linked services, including custody offerings to safeguard holdings and execution services 24 hours a day, seven days a week.

Fidelity Digital Assets only serves institutional investors such as hedge funds, family offices and market intermediaries.

Initially launched in the US, Fidelity’s crypto arm made the decision to target Europe back in 2019, hiring Chris Tyrer from Barclays to lead operations. The unit is one of the first crypto custody and trading platforms to be launched by an incumbent financial services player.

The increased European listings came even as the US Securities and Exchange Commission denied Fidelity Investments’ application for a long-awaited spot bitcoin exchange-traded fund (ETF).

Fidelity Digital Assets, immersed in crypto since 2018, has doubled its staff in locations such as Dublin, Boston, and Salt Lake City. The move came as the firm was rumored to be considering offering crypto trading to its more than 34 million retail customers.

Fidelity has also been busy working on a crypto exchange, in partnership with Charles Schwab, Ken Griffin’s Citadel Securities and US electronic market maker Virtu Financial.

Fidelity, which has nearly $4.5 trillion in assets under management (AUM), has been trying to structure a product that looks as close as possible to a traditional ETF. Trading bitcoin through an ETP structure removes the technical challenges associated with cryptocurrency such as setting up a wallet or trading or unregulated exchanges.

Read this next

Market News

Stock Market Analysis: Is NVDA Losing Its Leadership?

Since the beginning of the week, the S&P 500 Index (US500) has seen a modest increase of about 0.58%, whereas NVDA’s share price has experienced a decline of approximately 3.8%. This recent divergence raises concerns among Nvidia stock investors — could it signify a loss of NVDA’s market leadership?

Industry News

ESG: Australian regulator wins first greenwashing court case against Vanguard

Vanguard admitted that a notable portion of the securities within both the Index and the Fund did not undergo the promised ESG scrutiny.

Fintech, Uncategorized

BitMEX integrates HALO from Solidus Labs for cross-market surveillance

““The recent approval of the Spot Bitcoin ETF has piqued the market’s interest. As a result of price volatility, the trading volumes for crypto derivatives have gone up substantially. HALO, with its advanced technology and crypto-native detection architecture, will enable BitMEX to smoothly and safely scale trade surveillance across its increased trading volumes and provide the necessary safeguards for new product launches.”

Reviews

IUX Broker Review

IUX, recently rebranded from IUX Markets, stands as a multi-asset Forex broker recognized for its regulatory compliance across various jurisdictions.

Industry News

Horizon Software rebrands to Horizon Trading Solutions

“Horizon Trading Solutions has seen accelerated global growth over the past year to meet the rising demand for our trading solutions and built-for-purpose technology offering. The choice to rebrand represents a key part of this development, while maintaining our heritage and history in the industry.”

Market News

USDJPY has surged to levels last witnessed in 2022. Should we consider opening a short position?

The recent resurgence of the US dollar has propelled USD/JPY to new heights, touching levels not seen since 2022. This surge comes against the backdrop of stable short-term yields and ongoing economic data that fails to signal a significant slowdown, prompting questions about the extent of current monetary easing measures.

Digital Assets

DED Trends on Twitter After Memecoin Snapshot Announcement

Polkadot-backed community coin #DED, made it to the trending charts on X, demonstrating community’s engagement and interest behind the memecoin. 

Digital Assets

BlockDAG Presale Nears $10 Million Amid Toncoin’s Momentum, Green Bitcoin’s Presale, and the Rise of Other Top Cryptos

This article will examine three top trending topics: Toncoin’s potential, Green Bitcoin’s innovative presale, and BlockDAG’s sustainable mining approach. These cryptocurrencies take centre stage for their uniqueness and innovation.

Digital Assets

Coinbase scores minor victory vs SEC, but lawsuit to proceed

A federal judge in Manhattan, U.S. District Judge Katherine Polk Failla, ruled on Wednesday that the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Coinbase can largely proceed.

<