One of the world’s biggest pensions services provider, overseeing $2.5 trillion in assets, is reportedly planning to offer crypto trading.
They are looking to recruit a DevOps system engineer “to help engineer, create, and deploy a Digital Asset exchange to both a public and private cloud,” according to job postings seen by Business Insider.
They are further looking to hire for other positions to develop “first-in-class custodian services for Bitcoin and other digital currencies.”
Suggesting the investment giant is looking to provide their customers with the option of buying or selling digital currencies from the Fidelity platform.
Something which may potentially increase investment returns through diversification as cryptocurrencies like bitcoin and ethereum are uncorrelated with any other asset class.
Ensuring custody of bearer assets, however, is quite difficult and unlike any other asset. Fiat, of course, can simply be reversed, while gold can be protected with armed guards, but an equivalent for digital currencies does not really exist, requiring significant expertise in securing crypto custody.
Making it somewhat interesting that Fidelity has chosen to take on that responsibility themselves, rather than partnering with a crypto-company which has the experience and expertise of securing digital assets.
They may, therefore, be planning a crypto exchange as a strategic investment to maintain relevance in a more and more digitized world where securities and commodities might themselves start being tokenized.
In that regard, some previously crypto-focused companies are now starting to eye more traditional markets, while traditional companies are seemingly starting to expand their services to crypto offerings.
So creating an interesting area of potential disruption as cryptos begin maturing. Specifically, can investment banks and firms keep up with digitization as it continues to engulf pretty much all areas, or will they be content with old markets and so miss the new ones which may make them irrelevant.
That’s a question to which only time can provide an answer. Some will undoubtedly adapt, some will go the way of Kodak.
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