Fidelity Investments, a multinational financial service provider and a world leading investment firm with $2.3 trillion in managed assets, is now trying its hand at a novel service in order to help make life easier for its customers who have or want to invest in cryptocurrencies.
The investment giant has been secretly experimenting with Bitcoin, but now has decided to bring out some of those features to its wide-ranging customer base. Recent reports reveal that Fidelity is pushing into the realm of cryptos, and is now mining Bitcoin and Ethereum.
Recently, the Investment company declared a partnership between its Fidelity Labs, the company’s invention hub, and the secure digital currency provider, Coinbase. On its own, Coinbase serves approximately 9 million customers.
Owing to the partnership, Coinbase users will be able to see the balance of their Bitcoin, Ethereum, and Litecoin holdings together with their other assets in their portfolio with Fidelity. The company reportedly said that it was not completely sure how many of its users were going to benefit using this service, but then that was the entire purpose of the partnership.
The reports show that the company has been building miners in the first half of 2017 and that it would soon begin mining its own coins. According to what Fidelity CEO Abigail Johnson,”what began as a mining project for educational and learning commitments has now proliferated into a manoeuvre that is making a lot of money”.
At a Blockchain conference this year, Fidelity Investments had declared in May that soon its clients will be able to see their Bitcoin and other cryptocurrency balances on its website, provided it was stored on Coinbase. participating in unregulated cryptocoins was considered as an audacious move by the brokerage firm, and definitely unusual amongst financial institutions.
At present, Fidelity is making good on its promise by allowing its users to check their Bitcoin savings, whereby all Fidelity customers need do is approve the website to access their records from Coinbase.
Alongside the companies announcement of mining bitcoins, it is now allowing its employees to pay for food at the company’s cafeteria with Bitcoin. A brave move that illustrates the company is not just testing the waters with Bitcoin, it is embracing it.
Further evidence that Fidelity is completely embracing the technology, the company’s charity division had begun taking bitcoin contributions in 2015 and Fidelity received about $7 million worth of bitcoin donations during the last year. Johnson also shared that Fidelity employees who are supporting cryptocurrency have been labelled as “Bitcoin Vikings” inside the company for their adventurous spirit.
Fidelity had experimented internally before publically launching its digital coin strategy. Johnson has time and time again declared her belief in cryptocurrencies noted on numerous times that, she is a holder of Bitcoin. However, the company is also an endeavour to collect more information on how their clients maintain cryptocurrencies and the digital currencies performance.
For various higher education institutions, Fidelity aims to help benefit from Blockchain, the platform for digital assets. Moreover, Fidelity has made other significant moves that are associated with the Bitcoin by increasing its investments cryptocurrency businesses.
Fidelity has become the first leading financial services company to declare publically of its cryptocurrency actions, just as many of the large banking institutions have started trialling Bitcoin, Ethereum and other Blockchain-based practices internally.
This trend goes against JP Morgan Cheif, Jamie Dimon dismissed the digital asset as unsafe and stated that it is no more than a bubble, The Guardian.
The prospective uses of Blockchain are immeasurable, the benefits are unparalleled by any technology existing today. The blockchain is the greatest change in technology since the Internet. where its potential will not only assist banks to save time and money on improving transactions but may well leave a long-term effect on the financial sphere in the years to come.