Abigail Johnson, CEO of Fidelity Investments, said the company’s bitcoin custody business was “incredibly successful”.
Fidelity Investments President and CEO Abigail Johnson said the company’s bitcoin custody business was “incredibly successful” and has a “tremendous pipeline”.
Although Johnson did not provide specific details, she said that Fidelity is working hard to connect the traditional world with the future of digital currencies. “Building these entry and exit ramps to facilitate trade between fiat currencies and cryptocurrencies is something that is happening now, and I am happy that it is moving forward,” said Johnson in a statement. interview to Barron’s last week.
As for Fidelity’s bitcoin custody business, Johnson said it was necessary, given consumer demand. “If you had asked me at the beginning if we or someone else would prioritize custody of bitcoin, I would have said“ no way, I mean, this is the opposite of what it is about ”, but the reality is that you need to because if you an individual who hires a consultant and wants to make an inheritance plan, you really need someone to custody your bitcoin “.
THE Fidelity started offering bitcoin custody services in March 2019 through a separate subsidiary called Fidelity Digital Assets, which was created in October 2018. The entity was also looking to add support for ether (ETH), but no official announcement has yet been made about it. In addition to the custody of bitcoins, Fidelity Digital Assets also provides cryptocurrency trading services.
Johnson personally finds the crypto market “fascinating” and “super exciting”. Observing rapid developments in the industry, she said that distributed financial capabilities, such as Bitcoin’s Lightning Network, are “starting to become a reality”.
Overall, Johnson suggested that Fidelity’s crypto business is going in the right direction. “We had a good boost as a business, which is really exciting, and that’s what I really wanted to achieve when we moved to [cripto], so I’m really happy with that, ”she said.
Fidelity moved to the crypto universe in 2014. At the time, it started research and development efforts. A year later, the company started mining bitcoin and, in 2016, tested its first wallet and storage solution with employees.
Over the years, Fidelity has expanded its cryptographic services. Last week, the company partnered with the cryptocurrency BlockFi to custody the promised bitcoin. This means that Fidelity customers can now pledge their custodian bitcoin as collateral against BlockFi-funded dollar loans. The service aims to give Fidelity customers access to liquidity while maintaining their bitcoin.