Fidelity Investments, a major U.S. asset management firm, is reportedly planning to build a cryptocurrency exchange, according to recent job postings from the company.
The firm is internally recruiting for a DevOps systems engineer role aimed at "designing, building, and deploying a digital asset exchange on public and private clouds." An anonymous source from Business Insider revealed that this initiative has been in development for nearly a year.
Additionally, Fidelity is seeking talent to develop its "first-of-its-kind bitcoin and digital currency custody service." This position falls under Fidelity Digital Assets, the division responsible for providing cryptocurrency-related services.
Currently, some Fidelity clients have their investment portfolios linked to Coinbase accounts, allowing them to view both traditional and cryptocurrency holdings directly on Fidelity’s platform. If the exchange launch is successful, Fidelity would be able to directly custody clients’ digital assets.
It remains unclear whether the exchange will be integrated into Fidelity’s existing investment platform or established as a separate subsidiary. The launch timeline has also not been disclosed.
Under the leadership of CEO Abigail Johnson, Fidelity has emerged as one of the first major financial institutions to take a serious interest in cryptocurrency assets.
The company has invested in several blockchain and crypto firms and even initiated a small-scale cryptocurrency mining operation for educational purposes. Johnson has mentioned that this venture ended up being quite profitable.
Fidelity’s charitable foundation also accepts Bitcoin donations. In 2017 alone, it received Bitcoin contributions worth approximately $22 million.
In recent months, cryptocurrency exchanges have gained significant traction, with several seeking regulatory approval and licensing to serve institutional and corporate clients.
Circle, which acquired the crypto exchange Poloniex, has announced plans to register as a securities broker and alternative trading system (ATS) under SEC regulation, with eventual plans to pursue a banking license. Coinbase has similar ambitions.
Should a well-established and highly regulated firm like Fidelity successfully launch a crypto exchange, it could substantially enhance the legitimacy and mainstream adoption of digital assets.
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Frequently Asked Questions
Why is Fidelity entering the cryptocurrency exchange space?
Fidelity aims to offer integrated digital asset services to its clients, enabling direct custody and trading of cryptocurrencies alongside traditional assets. This move aligns with growing institutional interest in crypto.
How will Fidelity’s exchange differ from existing platforms like Coinbase?
While details are still unclear, Fidelity’s exchange will likely emphasize institutional-grade security, regulatory compliance, and integration with existing portfolio management tools.
Will Fidelity’s exchange be available to retail investors?
The company has not yet specified its target audience, but given Fidelity’s broad client base, the exchange may serve both institutional and individual investors.
What impact could Fidelity have on cryptocurrency regulation?
As a highly regulated and established firm, Fidelity’s entry could encourage clearer regulatory frameworks and greater acceptance of digital assets within traditional finance.
Is Fidelity already involved in other cryptocurrency services?
Yes, through Fidelity Digital Assets, the company offers custody and trade execution services for cryptocurrencies to institutional clients.
When is the exchange expected to launch?
No official launch date has been announced. The project is still in development, with job postings suggesting ongoing technical build-out.