Fidelity Investments has unveiled a new company, Fidelity Digital Asset Services LLC, to provide cryptocurrency services to institutional investors. The offering is aimed at sophisticated clients including hedge funds, family offices, and market intermediaries, with a focus on three core areas: custody, trade execution, and dedicated client support.
Institutional push into crypto services
According to Fidelity, its custody platform is designed as a secure, compliant, and institutional-grade omnibus storage solution for bitcoin, ether, and other digital assets. The company said the setup combines vaulted cold storage with a multi-layer physical and cyber access control framework, reflecting the security standards large investors typically expect.
For execution services, Fidelity plans to use its internal crossing engine and smart order router, enabling clients to access execution across multiple market venues. In addition, institutional users will be supported by a dedicated client service team from onboarding through the full relationship lifecycle.
Tom Jessop, head of Fidelity Digital Asset Services, said the firm already works with 13,000 institutional clients. He noted that these investors expect the same level of sophistication, service quality, and security in digital assets that they are used to in stock and bond markets.
Built on years of crypto exploration
Fidelity said it has $7.2 trillion in assets under administration, serves more than 27 million investors, and employs over 40,000 people. The launch of a dedicated digital asset business marks a significant step in bringing that scale and infrastructure into the crypto sector.
The company’s interest in crypto stretches back several years. Fidelity began researching cryptocurrency through its blockchain incubator in 2013, experimented with crypto mining, and integrated with Coinbase so customers could view their crypto balances on Fidelity’s website. In 2017, Fidelity Charitable, a public charity, received $69 million in cryptocurrency donations.
Chairman and CEO Abigail P. Johnson said Fidelity’s goal is to make digitally native assets such as bitcoin more accessible to investors. She added that the firm expects to keep investing and experimenting over the long term to help clients better understand and use this emerging asset class.