Fidelity leader Abigail Johnson has long been a fan of cryptocurrencies. Now Fidelity’s new crypto company, Fidelity Digital Assets, has been granted a license by New York’s financial regulator to offer its cryptocurrency trading and custody services to companies based in the state.
Fidelity posted in its blog:
“We have experienced a high interest level from these firms and anticipate that their increased involvement in this industry would enable more activities and development across the spectrum.”
The company hopes that offering digital currencies through a well-known firm will make people more comfortable to get involved.
Tom Jessop, president of Fidelity Digital Assets, said in an interview:
“We are seeing strong demand and greater diversity of client types. There are more traditional investors. When we started it was crypto funds and hedge funds.”
That might be true, but cryptocurrencies remain extremely volatile. so far, there aren’t any proven uses for the digital dollars, except holding on and hoping the next guy wants to buy it from you at a higher price than you paid.