Fidelity Digital Asset Services has revealed the company is expanding into Asia and plans to help high-net-worth investors and family offices in the region with custodial crypto products. Fidelity is working with the Singaporean startup Stack Funds, a fully-insured custody operation servicing traditional financial institutions.
Fidelity Investments Inc., is an American multinational financial services corporation that operates a subsidiary called Fidelity Digital Asset Services (FDAS). As of June 2020, the Boston-based Fidelity is one of the largest asset managers worldwide with $3.3 trillion in assets under management (AUM).
Back in August, filings with the U.S. Securities and Exchange Commission (SEC) had shown Fidelity filed with the SEC to invoke a bitcoin index fund. Fidelity’s FDAS unit also expanded to Europe as well and set up shop in the UK.
Speaking with Bloomberg, Christopher Tyrer, head of Fidelity Digital Assets Europe spoke about the company’s latest Asian expansion. “There is a critical need for platforms which have a deep understanding of what local and regional investors are looking for,” Tyrer detailed. “[Something that] “has historically been lacking in the digital asset space,” he added.
Stack Funds cofounder, Michael Collett, detailed that the FDAS expansion into Asia will offer a number of benefits to family offices and high-net-worth investors. Collett revealed services will offer digital currency insurance and monthly audits as well.
During the Asian expansion announcement, Collett said that the firm didn’t expect the mid-March market crypto rout, otherwise known as ‘Black Thursday.’
However, since the market downturn, crypto markets have picked up and Stack Funds has noticed more inquiries.
“This year has been tough as far as getting people into Bitcoin because it didn’t cover itself with glory in the market downturn,” Collett stressed. But “since the dark-dark days of March we’ve had inquiries pick up again,” the Stack Funds cofounder added.
What do you think about Fidelity Digital Asset Services expanding into Asia? Let us know what you think in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons, Fidelity Investments',
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