Canadian authorities have cleared the firm’s debut of a bitcoin custody and trading platform geared for institutional investors.
Canadian authorities have accepted Fidelity to become the country’s first bitcoin custodian. The action opens the path for additional Canadian organisations, including pension funds, portfolio managers, mutual funds, and exchange-traded funds, to invest in bitcoin.
Fidelity will start its service with an institutional-focused bitcoin trading and custody platform.According to The Globe and Mail, officials have approved Fidelity Canada to act as the country’s first bitcoin custodian. The Investment Industry Regulatory Organization of Canada (IIROC) has allowed Fidelity to establish a new bitcoin trading and custody platform for institutional investors such as pension funds, portfolio managers, mutual funds, and exchange-traded funds (ETFs) wanting direct exposure to bitcoin.
“Demand for investing in digital assets is increasing significantly, and institutional investors have been searching for a licenced dealer platform to access this asset class,” according to the research.
Numerous bitcoin funds operating in Canada now utilise custodians situated in the United States. By introducing a local alternative, Fidelity’s action may simplify the process, opening the path for more institutional investors to acquire BTC directly.
According to the study, “Fidelity Clearing Canada offers services to more than 100 investment businesses in Canada.” “Together with Fidelity Investments Canada ULC, they administer and manage more than $222 billion in assets as of June 30.”
The introduction of the new platform will be Fidelity Canada’s first foray into Bitcoin. Fidelity Investments Inc., on the other hand, established a comparable product in the United States in 2018, Fidelity Digital Assets, which has since supplied institutional investors with bitcoin custody and trade execution capabilities.
“Mr. Mackenzie thinks the company’s debut in the United Said provided Fidelity Canada with a four-year runway for swiftly establishing services in the cryptocurrency sector,” the paper states. The author’s views and opinions are his or her own and do not necessarily represent those of Nasdaq, Inc.
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