Fidelity’s Bold Leap into the UK

In an exciting turn of events, Fidelity Investments has announced the expansion of its cryptocurrency branch, Fidelity Digital Assets, to the United Kingdom. This move is set to shake up the digital asset landscape for European institutional investors, particularly hedge funds, eager to dip their toes into the world of crypto.

Setting Up Shop Across the Pond

As Fidelity Digital Assets gears up to offer services in the UK, they are straightforward about their regulatory standpoint. According to a Fidelity representative, the firm aims to comply with the evolving regulations surrounding digital assets, making sure they’re playing by the rules. However, it’s noteworthy that they’re venturing into the UK without needing any extra regulatory licenses—as long as they’re not missing something major, which they assure us they aren’t.

Bringing Bitcoin to the Forefront

Upon setting up their UK branch, Fidelity will initially focus exclusively on Bitcoin (BTC). They describe their current strategy as being ‘driven by clients’ needs,’ which suggests that, despite a crypto smorgasbord available, they’re keeping their sights firmly on the king of the coins.

History and Growth: Fidelity’s Journey So Far

Fidelity Digital Assets wasn’t always the powerhouse it is today. Launched in the U.S. in 2018, the firm has steadily built its credibility by providing custodial and trade execution services to institutional clients. Their operational approval from the New York State Department of Financial Services in November 2019 further solidified their position in the market.

What Lies Ahead: Potential Expansions and Future Services

While Bitcoin is the initial offering for Fidelity in the UK, the company has not ruled out the introduction of other digital assets in the near future. As they navigate the waters of European regulations and client preferences, there’s plenty of room for growth. The strategy seems simple: a robust framework will guide their analysis of which coins to service next. Will they look to add Ethereum or other tiers of crypto? Time will tell!

“We employ a robust framework through which we conduct the analysis of which coins we’ll service,” Fidelity highlighted.