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One of the largest financial services worldwide just made a move that might create a huge impact on the cryptocurrency sector. Fidelity Investments, a Boston-based asset management firm that handles around $7.2 trillion in clients’ assets, just launched a stand-alone company that will specifically cater to the crypto-related needs of institutional investors.

In a press release via Business Wire, Fidelity Investments announced on Oct. 15 that it had launched a new company called Fidelity Digital Assets. The subsidiary will offer cryptocurrency custody and trade execution services for institutional clients such as hedge funds, market intermediaries, and family offices.

Fidelity Investments Chairman and CEO Abigail P. Johnson said:

“Our goal is to make digitally-native assets, such as bitcoin, more accessible to investors. We expect to continue investing and experimenting, over the long-term, with ways to make this emerging asset class easier for our clients to understand and use.”

According to CNBC, Fidelity Digital Assets’ crypto custody services will include cold storage, which will store the digital assets offline. To ensure security, the firm will employ multilevel cyber and physical security measures, which is not that hard for Fidelity to implement as it could just adopt the security protocols from other parts of its global business empire to the newly created entity.

The stand-alone firm will initially have around 100 employees. It will be headquartered in Boston and will be available sometime in 2019.

A financial giant such as Fidelity entering into the crypto market is bound to have a positive impact on the crypto space. While the newly established subsidiary only caters to institutional investors, the asset management firm’s entry could “boost the validity of cryptocurrencies,” according to Forbes. This, in turn, could bring crypto trading to retail investors as it could be viewed as a sign of the company’s firm belief that the crypto industry is here to stay despite the current highly volatile environment.

Former Senior UX Designer at Wells Fargo and current Chief Executive of Hoard Jason Davis believes that Fidelity has the power to positively impact the market, saying:

“Fidelity gets it. I wholeheartedly believe Fidelity brings stronger validity to the marketplace.”

A recent survey by LendEDU and The Daily Hodl revealed just how retail investors trust their brokerages. Apparently, investors don’t trust cryptocurrency exchanges such as Coinbase that much. In the survey, 41 percent of the respondents said that they would trust traditional brokerages more, and a surprising 39 percent even said that they trust online retailer giant Amazon.com over Coinbase. Moreover, 52 percent said that they would invest in cryptos via their brokerage if they have that option.

Of course, Fidelity’s entry into crypto will entice even more institutional investors to come. Analysts have been predicting the arrival of big money into space that could trigger a market rebound, a process that might happen sooner with Fidelity Digital Assets’ creation as its services are tailor-fit for institutional clients.

Fidelity’s size certainly inspires trust among investors. More than 27 million high-net-worth clients globally trust it well enough to let the firm handle their wealth.

Fidelity’s New Subsidiary Could Positively Impact the Cryptocurrency Industry was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

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