One of global’s renowned investment managers, Fidelity Investments crypto wing has rolled on its inaugural outlet in Europe in efforts to tap into digital currency within the continent and bring it into traditional investing, Reuters reports.
In a statement released on Tuesday, Fidelity will become the custodian of Bitcoin owned by Nickel Digital Assets, a crypto management firm located in London.
The inadequate back-office offerings such as custodial services provided by global financial companies has been blamed as a major hindrance why institutional investors and other wealthy personalities have kept away from the crypto industry. It is expected that the entry of such companies like Fidelity will encourage big investors to enter into the industry.
Fidelity manages in excess of $7.8 trillion and its entry in the crypto industry will boost the confidence of large investors and bring mainstream cash into the growing industry. Large investors like pension managers have remained out of the crypto industry due to uncertainties in regulations and frequent hacks.
Speaking during the launch, Chris Tyrer, who heads the Fidelity’s crypto wing in Europe, explained the challenges inhibiting the involvement of large or institutional investors like regulations as well as high volatility are diminishing at a faster rate.
The entrance of cryptos into the mainstream money markets has been facing numerous challenges with Facebook’s led Libra crypto being met with regulation uncertainties and scepticism, especially in Europe. Germany and France have been on the forefront vowing to never allow the cryptocurrency operate or launch in Europe. Majority of authorities around the world have been raising questions that Libra might take over financial sovereignty from them if its launched in the current design.
Tyrer explained that having a uniform regulation within the European Union will help in tackling the problems associated with making cryptos mainstream and will also guide the service providers like his company.
Tyrer explained that his firm’s services are in high demand among family offices, various crypto firms and wealth managers. He however refused to divulge the exact amount of funds managed by his firms.
This article is Originally posted on CoinCentral.com
Author: Joseph Kibe