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Fidelity to Re-Enter the Crypto Market in Style

Fidelity to Re-Enter the Crypto Market in Style

Currently, Fidelity is on the run to hire new managers to take over its internal fund which was launched in 2017 to back its interest in the developing crypto space. The asset management company from Boston was forced to shut down the venture after important managers left their jobs. Matt Walsh was a prominent member of the team who also served as the vice president of the company. Nic Carter also left the job who worked as an investment researcher analyst at the firm.

Being a manager of $2.3 trillion worth of mutual funds, Fidelity Investments has worked to assist clients in entering the crypto sphere. It was also one of the first Wall Street juggernauts that provided account information to Coinbase clients on its platform.

Abigail Johnson, the company’s CEO, said that she “love(s) this stuff — bitcoin, Ethereum, blockchain technology — and what the future holds.”

She stated that Blockchain is more than a fresh way to manage transactions but has the potential to transform the market structure and the fundamental framework of the Internet too.  Johnson added, “When combined with things like the Internet of Things or the cloud, there’s no underestimating the potential that’s on the horizon.”

Moreover, Fidelity accepted digital currencies as a mode of payment for employee lunches which is against SEC’s guidelines of not considering virtual tokens as a utility currency.

It should also be noted that previous projects initiated by the company never saw significant profits, but it did clear the positive intentions the firm holds for digital coins.  It was revealed in 2017 that company has been mining cryptocurrencies. At that time Johnson said, “We set up a small bitcoin and Ethereum mining operation…that miraculously now is actually making a lot of money.”

Meanwhile, it was recently reported that Fidelity Investments is gearing up to open a crypto exchange.

An internal job advertisement was distributed among current employees which looks for a programmer to “engineer, create and deploy a Digital Asset exchange to both a public and private cloud.” The decision was taken after a yearlong study over the management and prospectus of a trading platform.

As of now, no official statement has been made about the new project. It is clear that Fidelity won’t be the first financial entity to take such a decision. An exchange was established by SBI Holdings Japan earlier this week.

However, the executives of the company have not made any announcement over the new exchange yet. The current speculations state that the firm would launch the exchange with a bang.

On a practical note, crypto exchanges have helped companies that did not have a significant launch pad.  Amidst the changing regulatory measures, some of these exchange have met with unforeseen problems which have crushed the businesses of smaller trading platforms.  After the inclusion of major financial institutions in the space the smaller ones will be benefited with the newfound stability and security in the market.

It also cannot be ignored that few critics have pointed out that such firms work against the fundamentals of digital coins like decentralization.

About the author


Andrew Romans

Andrew Romans is a Silicon Valley-based venture capitalist at 7BC.VC and Rubicon Venture Capital as well as an author of two top-10 books on Venture Capital on Amazon and Masters of Blockchain.

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