In one of the first bouts of positive news this year, mainstream investment giant Fidelity will look toward March to start up bitcoin custody activities.
Bloomberg’s recent report cited three anonymous in-the-know sources for the intel. Fidelity will support bitcoin storage initially, with ethereum custody on the horizon following the BTC service launch.
According to Fidelity’s statement yesterday, as quoted in Bloomberg’s report,
We are currently serving a select set of eligible clients as we continue to build our initial solutions […] Over the next several months, we will thoughtfully engage with and prioritize prospective clients based on needs, jurisdiction and other factors.”
Fidelity is a major player in the mainstream financial world, engaging over 13,000 institutions. The entity also has a history in the crypto space which dates back to its bitcoin mining days in 2015.
Back in October 2018, Crypto Insider reported on Fidelity’s interest in institutional crypto involvement.
A few notable YouTubers recently covered Fidelity’s fresh news, providing insight on the topic.
“I think this is even, in many respects, as big as Bakkt. I think a lot of people talk about Bakkt being this massive massive thing that’s going to drive and propel the market“, said in a recent video Rob Paone, business development staff at AirSwap and host of Crypto Bobby YouTube.
“Fidelity, which is one of the biggest household names in finance, they custody and manage trillions of dollars of assets“, Rob added, stating his opinion that this news is underrated in terms of significance.
Crypto influencer Sunny Decree also mentioned Fidelity’s news in his recent YouTube video, describing the topic as “very bullish” for bitcoin in terms of adoption and fundamentals.
“Custody service is definitely something which is very important“, said Sunny Decree.
Talking about his personal situation, Decree mentioned his need to store his crypto asset keys in several geographic locations to safeguard against events such as robbery. He even described storing one of his crypto hardware wallets in a bank.
“So even though sometimes it feels like that we would be happier without bigger financial institutions getting involved… well, we still need them. Let’s be real“, Decree noted.
Crypto custody a debatable service?
Custody service involves protecting and storing assets on behalf of customers, as is routinely practiced in traditional finance. Contrary to Sunny Decree’s comments, the topic of custody remains controversial in the crypto space.
One of the main advantages touted in the concept of cryptocurrency usage is the ability for users to store and control their own assets. Trace Mayer, as well as others, discussed this topic many times in relation to the recent “Proof of Keys” event on January 3. The event essentially expressed the notion that users must control their asset private keys in order to be truly sovereign of their crypto possessions.
Many arguments exist, both for and against crypto custody services.