Fidelity Investments is once again taking giant steps by announcing that the company is looking to expand its institutional crypto asset platform to accommodate trading services for 5 to 7 top cryptocurrencies by market cap.
Having been quizzed about what digital assets the company plans to list on its crypto trading platform, Tom Jessop, the head of the company’s digital Assets department, responded by saying the company plans to list other cryptocurrencies other than Bitcoin and Ether.
It would be recalled that Fidelity Investments announced last month that it would be launching a separate company, Fidelity Digital Asset Services which is set to kick off next year. According to the company, this new subsidiary of Fidelity Investments will offer customers custody and trading services for bitcoin and ether.
According to Jessop, “I think there is demand for the next four or five in rank of market cap order. So we will be looking at that.”
Speaking further on the company’s decision to enter into the crypto industry, Jessop remarked that Fidelity is taking a customer-driven approach that will provide its 13,000-plus institutional clients with bitcoin and ether services as this bunch of customers constitute a large part of the company’s current market cap.
“I think when it comes to security tokens or tokens that are likely to be deemed securities, we are waiting for that space to develop,” he added.
Also, he mentioned that, “We have had some interest but we don’t think it’s a groundswell of interest, so our focus is really on the top, call it five-seven, before we start building capabilities for the tail. But I think it will come.”
While the move by Fidelity has been lauded by crypto enthusiasts, it is important to note that the company has spent four to five years of R&D in the space with a long history of crypto asset class and it’s underlying potentials.
While he was also quick to note that digital assets haven’t enjoyed the sort of bullish run it experienced last year, he pointed out that the spike in prices allowed the company to raise $70 million in donations using crypto.