Fidelity launches the execution and retention of transactions for cryptocurrencies

Fidelity has a long history of enterprise security, as well as public and private key cryptography, to ensure that it is not included in these statistics. Its preservation solution will involve "cold storage", which will involve putting cryptocurrency offline, as well as multi-level physical and computer controls, among other security protocols created by exploiting Fidelity's security principles from from other areas of the business.

"You can look at the world of crypto and say" wow is this a new thing "but we've been managing key materials for a long time," Jessop said. "We gained our knowledge of business security management, and then, through our exploration of Bitcoin and some of the people we hired, quickly developed some crypto expertise. -native and federated both. "

Despite falling prices and rumors of hacking and fraud, the acceptance of cryptocurrency by institutions is growing.

Yale's chief investment officer, David Swensen, who manages the school's $ 29.4 billion endowment, has invested in two funds dedicated to cryptocurrency, sources told CNBC. Other sources of funding for Harvard University, Stanford University, Dartmouth College, the Massachusetts Institute of Technology, and the University of North Carolina would also have allocated funds to at least a cryptocurrency fund, reported the Information.

Fidelity's gesture could be more incentive to do so.

In addition to crypto-currency storage, Fidelity Digital Assets will use an internal crossover engine and an existing intelligent order router for the execution of operations. This order router will allow Fidelity 's institutional clients to execute transactions for bitcoins, ether and other assets in multiple markets. Although Jessop did not specify which, he specified that cryptocurrency trades must comply with the same "fidelity standard" as that applied in other areas of the business.

"We have a fairly long integration process for these types of counterparties, which involves diligence on their financial strength as well as on their regulatory procedures such as" know your client "and against money laundering, did he declare. "We will definitely only connect to the counterparties for which we feel good."