The cryptocurrency trading and custody platform from Fidelity Digital Assets has entered the “final testing” phase as they prepare to launch in Q1 2019. The company announced their progress and detailed their final testing and process refinement stages in a Medium blog post on January 31, 2019.
Per the announcement, the institutional investment firm has been building the technical and operational capabilities needed for securing, trading, and supporting digital assets for institutional investors.
As stated by the firm:
“Our initial clients are an important part of our final testing and process refinement periods, which will eventually enable us to provide these services to a broader set of eligible institutions.”
Final Testing Phase
In this final stage of development, Fidelity has been serving a select set of eligible clients as they continue to build and refine their cryptocurrency trading and custody solutions. The firm has been vigorously working to establish a robust set of technical and operational standards that institutional investors expect from such a firm.
The development team at fidelity has made the critical decisions on product direction and are now ready for what follows. During the testing phase, various teams involved in compliance, risk, and operations will be working with third-party auditors to refine their policies and procedures.
This process involves the adoption of existing operational processes as well as the establishment of setting new benchmarks for the cryptographic and blockchain-based aspects of their financial platform.
Regarding the work Fidelity has done thus far, they said:
“This work truly fascinates and inspires each of us at Fidelity Digital Assets. We realize Bitcoin is not the first form of digital cash, but we recognize the transformative potential it has created.”
To conclude their progress update regarding the final testing phase, Fidelity mentioned that they’ve had numerous conversations with various institutions and it’s clear to them that a trusted platform provider for the trading and storage of digital assets is well needed.
Therefore, Fidelity is committed to exceeding the standards and requirements of existing cryptocurrency trading and custody platforms. As stated in their blog post:
“[We are committed to] providing a combination of security and a central point of market access, disrupting the obfuscated nature of trading digital assets today.”
The Fidelity Digital Assets Platform
Fidelity announced the development of a cryptocurrency platform back in October 2018, with the establishment of their new company, Fidelity Digital Assets. Soon after their establishment, Fidelity announced that their new company will be offering both custody and trading services for digital assets.
The platform is targeted at institutional investors such as hedge funds, family offices, and market intermediaries. For now, retail investors will not be permitted to use their services.
As previously reported by IIB, Fidelity Digital Assets has confirmed that they will be launching with trading and custody services for Bitcoin (BTC) and Ethereum (ETH). However, there is speculation that the firm will be launching with the top 5 – 7 altcoins as well.
As stated by the head of Fidelity Digital Assets, Tom Jessop:
“I think there is demand for the next four or five in rank of market cap order. So we will be looking at that.”
Do you think Fidelity Digital Assets will launch with altcoins? Will the firm ever open up to retail investors, or stick to solely serving institutional clients? Let us know what you think in the comment section below.