Fidelity Looking to Build a Cryptocurrency Exchange
Fidelity Investment Corporation, with over $2.5 trillion under management, is looking for software developers to build a cryptocurrency exchange. Details have yet to be released about the launch date and how the exchange will operate.
This news comes as part of a slew of regulatory announcements regarding cryptocurrency. A new crypto-friendly SEC head has been appointed, Jay Clayton mentioned that Bitcoin and additional cryptocurrencies aren’t securities, a CFTC official has described blockchain as a “technical revolution,” and Coinbase is attempting to obtain licenses to trade SEC-regulated cryptocurrencies. While Coinbase has released a suite of institutional tools, existing financial conglomerates, such as Fidelity, can change more seamlessly change their customers and portfolios towards the sector.
While there is much chatter and enthusiasm surrounding cryptocurrencies, the actual quantities traded are negligible in comparison to other financial marketplaces. Fidelity’s foray into cryptocurrencies indicates a definite interest from established financial organizations. If pension programs, mutual funds, hedge funds, and ETFs turn even 1% of their portfolios towards cryptocurrencies, the result on cost, adoption, and integration will be phenomenal.