Fidelity International, a multinational investment firm, has announced that it plans to remain an active participant in the cryptocurrency ecosystem. Christian Staub, Managing Director for Fidelity International’s business in Europe, explained that the organization will continue to offer access to digital assets to interested customers, albeit without urging them to buy bitcoin due to its volatile and nascent nature. He added that Fidelity recognizes the inherent lack of regulatory coherence and oversight in the space, and that the industry remains in its early stages, which is likely to lead to enhanced volatility.
Staub expressed his belief that the digital asset class is set to become more sophisticated in the years ahead, although it remains difficult to predict which digital assets will deliver over the long term, and whether they will outperform other asset classes. While Fidelity expects regulatory coherence to boost digital asset adoption, it has to be careful in the products it offers, given its role as a traditional financial institution.
Fidelity has been a pioneer in the cryptocurrency space since 2014, when it began researching cryptocurrencies and blockchain technology. It established its subsidiary Fidelity Digital Assets in 2018, and subsequently allowed investors to add bitcoin to their 401(k) retirement accounts. Fidelity Digital Assets – which has shown an ongoing commitment to the sector – recently pledged to hire over 100 engineers and 100 customer-service specialists to oversee the firm’s crypto activities and assist clients. The investment giant also plans to provide bitcoin and Ethereum (ETH) trading options to retail investors, an initiative that went live earlier this year. Furthermore, Fidelity recently filed applications covering NFTs, virtual real estate investing, and more, indicating its intention to join the metaverse ecosystem.