Bitcoin could get a strong boost in March of 2019 as Fidelity Investments, one of the top global money and asset managers, is said to be launching a custody business. This would bring Fidelity into the world of Bitcoin and give both parties a boost in the press that the digital world really needs given the end of 2018 being a horrible period for Bitcoin. Note we sourced and relied on several articles and historical information including one in Bitcoin magazine by Landon Manning, 30 January, for this article.
The custody business is common in securities such as bonds and equity, but in the crypto space is new. This is a service in which a large international investor can buy and sell assets with a firm taking custody and looking after a series of transactions and safe-keeping these securities. Think of it as a holding area or warehouse for all the transactions one is doing around the globe. So doing thousands of transactions per day in 50 countries would require support and minding of many different assets in different currencies in Tokyo, London, Zurich and New York. Fidelity sees trillions of dollars of flows around the world, providing institutional custody is great news for the industry.
The sources for this news now say that Bitcoin is the first digital currency on the platform and one would expect to see more in the future. Of course protecting these digital currencies from theft and fraud would, in the long-term encourage investors to trust the product more. We at Classiarius feel that names like Fidelity, which are in fact the gold standard in global investing, will only give the industry much needed support and legitimacy.