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Cryptocurrency Week in Review: Fidelity and Goldman Jump into Custody

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Cryptocurrency has certainly been a volatile beast.

But it appears things are only improving, as major banks jump into crypto-custody, and perhaps attract further institutional interest. Here’s what happened over the last week.

Cryptocurrency: Fidelity Announced its Fidelity Digital Asset Services

The new company will offer custody and trade execution for digital assets.  All in an effort to target institutional investors like hedge funds and family offices.

“Our goal is to make digitally native assets, such as bitcoin, more accessible to investors,” Fidelity Investments Chairman and CEO Abigail Johnson said, as quoted by CNBC. “We expect to continue investing and experimenting, over the long-term, with ways to make this emerging asset class easier for our clients to understand and use.”

One of the steps in realizing this is to create a foundation of institutional solutions that will advance the industry.

While there are many retail service providers in the space today, there is a gap in support for institutions.

However, that could soon change with help from Fidelity.  Not only will the company offer client services, and trade execution, it will provide a secure, compliant storage solution.

By doing so, it’ll help foster growth and potential further interest among institutions.

Cryptocurrency: Goldman Sachs and Michael Novogratz Invest in BitGo

Michael Novogratz and Goldman Sachs announced they’re investing in BitGo.

Reportedly, both invested about $15 million into BitGo’s Series B funding round.

According to CEO Mike Belshe, “This strategic investment from Goldman Sachs and Galaxy Digital Ventures validates both our market opportunity and unique position. No one is better positioned than BitGo to serve institutional investors who want to trade cryptocurrencies and digital assets. That’s why we’re focused on figuring out what it takes to secure a trillion dollars. The market’s not there yet but our job is to be ready first.”

“Greater institutional participation in the digital asset markets requires secure and regulated custody solutions,” said Rana Yared, Managing Director of Goldman’s Principal Strategic Investments group. “We view our investment in BitGo as an exciting opportunity to contribute to the evolution of this critical market infrastructure.”

“Institutional investors are gradually realizing that digital assets are going to be a game changer, and they want to participate,” said Michael Novogratz, Founder of Galaxy Digital Ventures LLC.

We’d say cryptocurrency had a great week on that news.

 

 

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