Fidelity scales up its digital asset business to Europe

Fidelity today announced that it is establishing a new entity to serve Europe-based institutions investing in the digital asset (Bitcoin). The planned entity will be based in the UK and will offer digital asset (Bitcoin) custody and trade execution to Europe-based investors such as hedge funds, family offices, etc.

Growing demand for Fidelity’s digital asset custody and trade execution services has encouraged the firm to scale in other jurisdictions.

Interest expressed from the UK and Europe-based clients, “indicates a market with increasing potential which gives us the confidence to expand the digital asset business geographically,” said Tom Jessop, President of Fidelity Digital Assets.

The European operation will be lead by Chris Tyrer who previously served as a managing director at Barclays Investment Bank.

Fidelity digital asset service was launched in October 2018 to address a gap for institutional investors who required a trusted provider to enter the digital asset market.

Fidelity sets itself apart from its competitors by pairing its custody service with a trade execution platform. It provides a one-stop-shop service to buy, sell and securely store the Bitcoin for its institutional clients.

Recently, Fidelity obtained a trust license from the New York Department of Financial Services. The license allows Fidelity to offer Bitcoin custody service and operate a trading platform for New York’s residents.

As reported by the Financial News, Fidelity will currently offer service for Bitcoin. Given the long track record, Bitcoin has a large interest from institutional investors. However, as other cryptocurrencies such as Ethereum mature, there are hopes Fidelity may expand its services in other digital assets.