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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...................... To view our full article Click here
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