Reuters NY reported on Wednesday that Fidelity`s clients had been allowed to follow their Bitcoin and other crypto currencies through Coinbase provider, holdings on the investments` company`s website.
First of all such step was tested by the Boston-based money manager’s employees. And now it has proved that crypto currencies are to be used much more in the near future.
Since last Wednesday Fidelity`s clients have been able to authorize Coinbase to provide the fund manager with data on their holdings. Coinbase currently is one of the biggest crypto currency exchanges in the USA. It enables users to buy and trade not only Bitcoin, but Ethereum and Litecoin as well.
Hadley Stern at Fidelity Labs said in an interview “This is an experiment in the spirit of learning what these crypto assets are like and how our customers may want to interact with them.”
Such experiment will help Fidelity to find out more about digital crypto currencies, among which Bitcoin may be considered the oldest and the most valuable one.
Bitcoin reached its record high last Tuesday: on Coinbase one unit of bitcoin trading at above $3,400.
The currency’s rise in value is not a driving force behind the initiative, Stern reported, noting that the integration is part of Fidelity’s wider efforts around crypto currencies and their underlying technology blockchain.
Blockchain is a shared ledger of transactions maintained by a network of computers on the internet. Over the past two years investments in blockchain have increased hoping that it can help to slash costs and simplify some processes.
However, so may financial institutions prefer not to be associated with bitcoin and crypto currencies, and the reason why is that the sector remains largely unregulated.
Fidelity’s Chief Executive Officer Abigail Johnson made an announcement, that Fidelity Inc. intents to start the Coinbase integration in May of the upcoming year.
At the same industry conference Johnson also revealed that Fidelity had been accepting bitcoin payments in its cafeteria. “But I am still a believer – and it’s no accident that I’m one of the few standing before you today from a large financial services firm that hasn’t given up on digital currencies,” Johnson stated.