The need for security has been classified as one of the tiers of basic human requirements in Maslow’s famous hierarchy of needs. And though this pyramid of needs is not universal because of the cultural and geographical differences, it seems that the need for security surpasses those differences. As even in the cryptoverse security is of utmost importance.
Despite the claims of full proof security by several blockchain and crypto firms, certain people and firms in the crypto space are still on the look out for added security. This is where the American investment firm, Fidelity comes in. According to Bloomberg’s report on Jan. 29, the firm that administers over $7.2 trillion in client assets will be launching its Bitcoin (BTC) custody offering in March.
Custody services are more common in the traditional financial world. In the stocks and bonds markets, they are the third party services that offer to hold on to assets in order to reduce the chances of theft. They may sound similar to our traditional banks, however they differ because unlike banks, they are not allowed to use any of the stored financial assets for their own benefits.
According to the report, this plan to launch custody offerings, is actually the next step of the plan that initiated back in October last year, when Fidelity made the announcement for the launch of a new company, Fidelity Digital Asset Services.
Reportedly the company’s main targets are institutional investors like “hedge funds, family offices and market intermediaries, hence it will be offering custody and trade execution services for digital assets. However, Fidelity’s services will not be accessible to retail investors initially.
We are currently serving a select set of eligible clients as we continue to build our initial solutions. Over the next several months, we will thoughtfully engage with and prioritize prospective clients based on needs, jurisdiction and other factors
As traditional financial systems, like Fidelity step into the crypto space with custody services, crypto firms aren’t far behind. Like the cryptocurrency exchange and wallet service, Coinbase introduced its very own custody solution, which launched back in July, 2018.
Who knows, maybe custody services will play an important part in the crypto ecosystem in near future. For further details, stay tuned to BlockPublisher.
