On January 14, Fidelity Investments’ cryptocurrency arm revealed that they were soon launching into Europe’s markets. This comes after the company had success in the United States after launching last year.
The mainstream adoption of cryptocurrencies and blockchain technology has been seen as the foremost metric to measure the field’s success. This positive feeling has also been boosted by the entry of traditional players into the digital assets space, with Fidelity announcing a major leap recently.
Fidelity Digital Assets will begin function as a custodian just for Bitcoin in London within the next few weeks. The Bitcoin in consideration is held by Nickel Digital Asset Management in London. Anatoly Crachilov, the Chief Executive Officer of Nickel gave his two cents on the partnership by saying:
“We can see this demand for our first fund, so it’s the right inflection point for the market to see this flow of substantial institutional capital. People are willing to go into it.”
Fidelity Digital Assets will be the Bitcoin fund’s principal custodian with the added help of Copper. Trident Trust. Copper, a popular brokerage service will be the fund’s administrator joined by KPMG as the auditor. The presence of such popular institutions is expected to bring in more investors to space, most dissuaded because of the ‘lack of market stability’.
Sources close to Fidelity have stated that the progress of mainstream companies in the fintech industry had quickened in the last couple of months. Chris Tyler, who is charged with running Fidelity’s Europe head, candidly stated that the hurdles for institutions were getting lower and lower as time progresses. According to him, factors such as regulation, quality of service providers and dynamic volatility were all resolving themselves.
Nickel’s presence in the tie-up is expected to create a secure institutional-grade gateway for users to enter the Bitcoin market. Bitcoin was the only cryptocurrency in the company’s blueprint right now because of how much the market relies on it. Experts have said that Europe was ready to rub shoulders with Bitcoin because of the growing interest from the American as well as Asian markets.
Bitcoin’s pull has been so massive in 2020 that it triggered a widespread bull run across the board. This price hike also caused several altcoins to surge in massive amounts. While last year Bitcoin was trudging near the $6000 region, at the moment, BTC was on its way to the $9000 region.