Wall Street Giant wins license to trade with Bitcoin

  • Fidelity Digital Assets will be able to offer Bitcoin services thanks to a license granted by the State of New York.
  • Galaxy Digital launches a new investment fund with Bitcoin. The assets will be guarded by Bakkt and Fidelity.

In terms of adoption, Bitcoin continues to gain momentum. One of the most important barriers in this regard has been the U.S. regulatory institutions. However, the investment firm Fidelity has obtained a license to trade Bitcoin in the state of New York. A significant step for the cryptoindustry.

The announcement comes when Fidelity could be part of the new investment fund launched by Galaxy Digital. Both facts have the potential to bring new investors to the cryptocurrency market.

Fidelity will seek to attract large investors with Bitcoin

Fidelity was licensed to trade and offer custody services with Bitcoin by the New York State Department of Financial Services (NYDFS). The announcement was made through Medium.

In the foreseeable future, Fidelity will be able to launch a platform based on Bitcoin. In this way, it will be able to attract new and large investors to the cryptomarket. The license authorizes Fidelity to offer trading and custody services.

Fidelity highlighted the advantages of the operations you will be able to do, from now on:

Audited operations

Regulatory oversight

Institutional accounting structure

Risk management practices

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No doubt these aspects will keep adoption growing. Many investors will be able to feel more confident by relying on Fidelity’s services. In addition, the effect could expand to other cryptocurrencies, to the technology that supports them, to the development of projects and new alliances of important players.

Galaxy Digital to use Bitcoin custody services with Bakkt and Fidelity

As an example of the above, is the cooperation that Galaxy Digital will make with Bakt and Fidelity. The alliance aims to safeguard the acquired capital through a new Bitcoin investment fund created by Galaxy Digital.

Bakkt CEO Kelly Loeffler spoke on behalf of her institution which, together with Fidelity, will serve as guarantor for the investment fund:

As sophisticated institutions and investors seek to expose themselves to digital assets through new investment products, they are seeking the highest standards in asset security.

This new cooperation will have a positive effect on the market. Bitcoin futures at Bakkt have broken twice its trading record, after the disappointing start they had on the platform.

The price of Bitcoin, at the time of publishing the article, stands at $8,160 with a slight upward movement (0.17%) in the last 24 hours.

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About Author

Reynaldo Marquez has closely followed the growth of Bitcoin and blockchain technology since 2016. He has since worked as a columnist on crypto coins covering advances, falls and rises in the market, bifurcations and developments. He believes that crypto coins and blockchain technology will have a great positive impact on people's lives.

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