Financial services firm Fidelity Investments announced on Tuesday it is planning to establish a new digital asset business that will support European institutional investors. Fidelity Digital Assets, Ltd. will reportedly offer access to enterprise-quality custody and trade execution services for digital assets to investors such as hedge funds, family offices, and market intermediaries. Fidelity noted that the business builds upon the company’s 2018 launch of Fidelity Digital Asset Services, LLC (Fidelity Digital Assets), which is described as a New York state-chartered limited liability trust company that already provides these services to U.S.-based institutional investors.
While sharing details about the business, Tom Jessop, head of Corporate Business Development for Fidelity Investments and president of Fidelity Digital Assets, stated:
“Since launching Fidelity Digital Assets in the U.S. over a year ago, we’ve seen significant interest and engagement by the institutional community, which show no signs of slowing. We’re also encouraged by continued corporate and venture investment in market infrastructure companies as well as the entry of traditional exchanges into the digital assets ecosystem. These and other market indicators, alongside interest expressed from U.K. and European client prospects, indicate a market with increasing potential which gives us the confidence to expand the digital assets business geographically.”
Fidelity Digital Assets, Ltd. will notably provide access to services that are considered foundational for institutions engaging with digital assets, and essential building blocks for advancing digital asset investing, which includes the following:
- Institutional-Grade Custody of Digital Assets: Secure, compliant, and institutional-grade storage solution for bitcoin, and other digital assets in the future.
- Trade Execution: Will provide access to a trade execution venue that facilitates trading for clients by providing them access to multiple sources of liquidity through a single platform that leverages a proven internal crossing engine and smart order router.
- Dedicated Client Service: Emphasizes client support in its offering. Fidelity Digital Assets, Ltd. clients will have access to a dedicated team of client service specialists, from onboarding and throughout the entire relationship with the company.
Tyrer will be managing the European business for Fidelity Digital Assets, Ltd. and will lead client service activity in the region. Tyrer added:
“The demand we’ve seen for Fidelity’s digital asset custody and trade execution services has been borderless, and we’re scaling our business to operate in a variety of jurisdictions to support this industry for the long-term. In doing so, we’re building on the commitment to make digitally-native assets, such as bitcoin, more accessible to institutional investors.”