The institutional buy-in by major banks and related companies will continue this week. Fidelity Digital is the company’s business solution for digital assets. In a recent story, first published by Bloomberg this week, crypto demand is causing the Fidelity division to increase its workforce by roughly 70%.
Fidelity Digital: doubling
The report cites an interview with the President of Fidelity Digital Assets, Tom Jessop, who described ether in particular as a highly interesting product.
Jessop noted that 2020 “was a real breakthrough year for space given the interest in Bitcoin when the pandemic started”. He added that the company has “seen more interest in ether, so we want to be ahead of that demand.”
Currently, the digital department only offers custody, trading, and select services for Bitcoin; The list of assets appears to be growing, however, and Jessop also cited the company’s desire to offer crypto trading “full-time” for most of the week.
Fidelity Investments is a Boston-based company with assets under management in excess of USD 10,000. The expansion of the Fidelity Digital team is likely to result in the hiring of up to 100 people across Boston, Salt Lake City and Dublin. The hiring frenzy follows an expansion in November late last year that included more than twenty engineers developing the division’s trading and custody services.
In the first half of this year alone, Fidelity applied for a Bitcoin ETF and announced Sherlock, an analytical tool for institutional investors in digital assets. The leading investment firm also has a partnership with BlockFi, which enables institutional clients to use Bitcoin as collateral for cash advances. Fidelity has also invested in companies like Circle, the USDC stablecoin issuer. Circle is about to go public with a SPAC deal valued at approximately $ 4.5 billion.
Meanwhile, outside of the US, the company has also teamed up with British broker TP ICAP and Zodia Custody to launch a crypto trading platform.
Related reading | Central Bank of Portugal approves crypto exchange licenses
In recent weeks and months, institutions like banks and credit cards seem to have continued to hit the headlines with increasing initiatives in cryptocurrencies. In the past week alone, Swiss bank Sygnum introduced Ethereum 2.0 staking, Visa has reported over $ 1 billion in crypto card spending so far this year, and a bank in Ukraine announced the launch of a Bitcoin trading function.
Venture capital firms, too, continue to pour money into the crypto space, including crypto firms.
BTC has been the horse and carriage for Fidelity Digital Assets service offerings, but that could soon be expanded as customers diversify in digital asset demands. | Source: BTC-USD on TradingView.com
Related reading | How Coinbase, Square and Fidelity support Bitcoin
Featured image from Pixabay, Charts from TradingView.com