Your favorite crypto news blog

Fidelity Wins Trading License in New York, Hurray to Bitcoin

Bitcoin 2019/11/19 19:12 by davitbabayan

Bitcoin adoption on Wall Street is looking real as a $2.8 trillion financial giant wins a license to trade and custody it.

Boston-based Fidelity today announced that it has received permission from the New York State Department of Financial Services (NYDFS) to offer bitcoin trading and storage services. The move allows the giant to create and launch a digital currency platform that would specifically cater to institutional investors. They, as NYDFS noted, would be able to purchase, sell, store, and transfer bitcoin on Fidelity Digital Assets.

Chief Operating Officer Michael O’Reilly reiterated a similar sentiment in his press statement, stating that NYDFS’ approval could help make big investors more comfortable while investing in bitcoin. Excerpts:

The custody and trade execution services that we provide are essential building blocks for institutional investors’ continued adoption of digital assets. The designation as a New York trust company under the supervision and examination of the DFS builds on the credibility and trust we’re establishing among institutions and other market participants.

Big Money Coming to Bitcoin?

Institutional investors so far have maintained a safe distance from the bitcoin industry. Lack of regulation, price manipulation, and a growing number of fraud and wallet hacking incidents made bitcoin look like a risky investment alternative. Nevertheless, after financial giants like Fidelity, Intercontinental Exchange, VanEck, TD Ameritrade, and others announced that they would launch regulated bitcoin trading products, trade pundits predicted a mass influx of institutional capital into the cryptocurrency space.

Investors with huge risk-appetite, at the same time, have already started allocating bitcoin and other related instruments to their portfolios. Endowments of Harvard and Yale University, as well as two Virginia-based pension plans lately invested huge sums in the cryptocurrency and blockchain space. Moreover, the rise in the bitcoin price in the second quarter against yuan devaluation and the US-China trade dispute further showed that big investors are looking at the cryptocurrency as a non-correlated, safe-haven asset.

bitcoin, cryptocurrency

Bitcoin established a year-to-high of $14,000 in 2019 as US-China trade tensions escalated and yuan fell to its six-year low | Image credits: TradingView.com

NYDFS so far has given regulatory approval to 23 cryptocurrency-related firms. Earlier this year, the department allowed Bakkt, a digital asset platform backed by the Intercontinental Exchange, to offer bitcoin custodial and derivates services.

What do you make of Fidelity’s new announcement? Add your thoughts below!

Images via Shutterstock, Twitter @DigitalAssets, BTCUSD charts by Tradingview

The post Fidelity Wins Trading License in New York, Hurray to Bitcoin appeared first on Bitcoinist.com.

0 Like(s)

You should also read...

Altcoins 09/05/20 19:16 by PR DESK
How tokenized real-world assets can help crypto investors beat volatility
Since their inception, Cryptocurrencies have slowly but surely gained ground in the world of finance. They are revolutionizing the world of finance through their underlying technology, the blockchain...
Read More
Bitcoin 10/06/20 00:33 by Brenda Ngari
Bullish Boost: A Quarter Of Large Institutional Investors Hold Bitcoin In Their Portfolio, New Survey Reveals
In early May, bitcoin underwent halving, the third in the network’s history. This means that the mining rewards were reduced from 12.5 BTC to 6.25 BTC. As a result, there are now fewer bitcoins bei...
Read More
Bitcoin 10/06/20 02:00 by Nick Chong
3 Trends Are Drawing Wall Street to Bitcoin and Crypto: Fidelity Survey
Over the past few months, we’ve seen a strong uptick in institutions adopting Bitcoin and crypto-assets. Nothing shows this as well as Grayscale’s Bitcoin Trust, a leading way that institu...
Read More
Bitcoin 10/06/20 20:20 by Brenda Ngari
Paving Way For Big Money: Bakkt, Galaxy Digital Launch Joint Institutional-Grade Bitcoin Custody Service
Bakkt, the bitcoin derivatives and custody platform owned by Intercontinental Exchange (the operator of the New York Stock Exchange) has linked up with investment management firm Galaxy Digital to cr...
Read More
Bitcoin 29/07/20 10:22 by Steve Muchoki
Bakkt Reports Highest Ever Figure for Bitcoin Monthly Futures
ICE backed company, Bakkt reported a new record in its Bakkt Bitcoin Futures traded in two days. “Talk about momentum! We beat yesterday’s record with 11,706 Bakkt Bitcoin Futures traded toda...
Read More