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Alternative Market Briefing

Fidelity's venture will bring greater credibility to the digital asset class

Monday, October 22, 2018

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Huhnsik Chung
B. G., Opalesque Geneva:

Fidelity Investments' launch of Fidelity Digital Assets, a platform that will offer custody and trade execution services for cryptocurrencies to institutional investors such as hedge funds, is being hailed as a great victory for the digital asset class.

"So far, custody of crypto assets has been one of the significant barriers for institutional investors," said Anthony Tu-Sekine, partner at law firm Seward & Kissel LLP in Washington, D.C.

"Many of the custody providers that are currently willing to hold crypto assets are either relatively small, fairly new or not operating in a fashion that traditional institutional investors are accustomed to. The creation of Fidelity Digital Assets may remove that obstacle and should make it easier for institutional investors to have access to a custodian with which they are comfortable."

The creation of this venture is demand driven, according to Huhnsik Chung, a partner at law firm Stroock & Stroock & Lavan LLP in New York, and an expert in insurance and fintech.

"Hedge funds and others have been looking for a custody solution for these assets - as they exist in the cloud with a key providing access. The lack of such services have stifled the growth of the digital asset class."

The entry of Fidelity lends creditability to the asset class, he s......................

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