Fidelity has launched Fidelity Digital Asset Services, a stand-alone company to facilitate cryptocurrency trading for institutional investors. The company will offer custody and trade execution services for a handful of more liquid cryptocurrencies. It will use existing, in-house technology including a crossing engine and smart-order router to execute trades at multiple venues. “Cryptocurrencies are the new frontier in financial services, but they have not yet been fully integrated into traditional asset management systems,” said David Swensen, CEO of Fidelity. Goldman Sachs and Northern Trust are also understood to be researching offering custody services, and earlier this year, Nomura announced plans to offer crypto custody.
Fidelity has launched Fidelity Digital Asset Services, a stand-alone company to facilitate cryptocurrency trading for institutional investors. The company will offer custody and trade execution services for a handful of more liquid cryptocurrencies. It will use existing, in-house technology including a crossing engine and smart-order router to execute trades at multiple venues. Fidelity steals a lead with the move, becoming the first Wall Street firm to officially offer cryptocurrency custody. Goldman Sachs and Northern Trust are also understood to be researching offering custody services, and earlier this year, Nomura announced plans to offer crypto custody.