Fidelity To Debut Bitcoin Trading Feature In Brokerage Platform
- Fidelity Investments, a well-known multinational financial services corporation, might be planning to integrate Bitcoin trading into its brokerage platform, according to several sources familiar with the matter.
- The company has a customer base of 34 million and it recently added the option of including Bitcoin in its 401(k) for all those who want to include some BTC in their retirement funds.
Boston-based multinational financial services company Fidelity Investments is planning to allow Bitcoin trading for individual investors on its brokerage platform.
A recent report by the Wall Street Journal cited anonymous people familiar with the matter who revealed that the Abigail Johnson-owned company is working toward bringing crypto to its over 34.4 million brokerage accounts, marking another foray into the crypto industry
Mike Novogratz, the CEO of Galaxy Holdings Ltd. and one of Fidelity’s first cryptocurrency clients, hinted on Monday at the SALT Conference that Fidelity might soon follow its competitors in using access to digital assets as a significant selling point for a new generation of investors.
“A bird told me that Fidelity, a little bird in my ear, is going to shift their retail customers into crypto soon enough. I hope that bird is right. And so we are seeing this institutional march,”He stated.
Notably, Fidelity released a paper in January entitled “Bitcoin First” that listed a number of reasons why investors should invest in BTC, which its proponents believe to be a store of value. The company is apparently planning to give its millions of clients the same opportunity. It stated in January’s report:
“Bitcoin is fundamentally different from any other digital asset. No other digital asset is likely to improve upon bitcoin as a monetary good because bitcoin is the most (relative to other digital assets) secure, decentralized, sound digital money.”
Headed by its chief executive Johnson, Fidelity was one of the first major financial companies to support digital assets and the underlying technology. Nearly ten years ago, Johnson started having weekly crypto discussions with her subordinates, and in 2015, Fidelity started mining bitcoin. Moreover, it launched its own crypto fund for affluent customers in 2020 at a time when the COVID-19 pandemic was at its peak.
It is important to note that in 2018, Fidelity Investments launched a Bitcoin trading company for hedge funds and other institutional investors. Moreover, earlier this year, the company further allowed corporate clients to add Bitcoin to the 401(k) retirement plans.
Nonetheless, soon after the company opened its 401(k) accounts to bitcoin, industry executives began to state it was only a matter of time until the company decided to allow its brokerage customers to hold Bitcoin in their accounts.
However, the news might drive regulatory attention. This is because the United States Department of Labor has previously raised concerns about companies’ decisions to allow their staff members to invest in cryptocurrencies through their Fidelity retirement plans. The scheme has also drawn criticism from a number of U.S. senators, who pointed to the risks of investing savings in such risky assets.