Fidelity is planning to launch their Bitcoin custody service in March, according to three insiders of firms in talks with Fidelity. Last October the company announced that it would be launching a number of crypto related products and services. The first service will be their Bitcoin custody service for large investors like institutions and hedge funds.
Fidelity is not a newcomer to the Bitcoin space. In 2015 the company was already mining Bitcoin and Fidelity CEO Abigail Johnson has been a proponent of digital assets unlike many of Fidelity’s rivals. With Bakkt launching their Bitcoin futures soon, it comes as no surprise that Fidelity would launch their Bitcoin custody solution around the same time.
Fidelity is one of the largest providers of retirement savings and mutual funds. The company works with more than 13,000 financial institutions and has a top notch reputation.
Many in the Bitcoin space believe (and rightly so) in the concept of “Not your keys, not your bitcoin”. Fidelity holding such a large number of bitcoins on behalf of others could very well be a security risk. Though considering their reputation, that risk is slim. Even so the backing by such a giant in the investment space is very promising and shows that Bitcoin has a very bright future.