21 Nov 2019 Arjun Agarwal
Fidelity`s Crypto Subsidiary Obtains а NY Trading License
Fidelity Investments, a multinational Boston-based financial services corporation, has been exploring options for blockchain utilization for several years. The corporation is now stepping up their blockchain development game with the Fidelity Digital Assets crypto subsidiary. The subsidiary obtained a license from the New York state financial regulators.
Regulatory approval means that Fidelity Digital Assets will be able to offer crypto trading and financial services in the state of New York. All crypto services that are part of Fidelity Digital Assets offering, were very difficult for reaching end customers prior the acquisition of the license.
The main reason for companies being driven away from applying for license was New York`s notoriously known BitLicense company. A significant number of crypto companies gave up on the idea of going through the entire paperwork and approval process.
BitLicense generated a large opening in the crypto market in New York due to the high regulatory requirements, which set smaller crypto companies in a struggle for survival.
Fidelity Digital Assets aims to meet the higher demand for cryptos in New York. The acquired license should allow Fidelity to act as a connecting bridge in the missing gap of cryptocurrency-related services, and offer Bitcoin and other crypto based offerings in the state.
“We observed an enormous interest from companies, and the increased market activities that we see should attract more and more companies to the crypto space,” Fidelity writes in a blog post.
Michael O’Reilly, CEO of Fidelity’s subsidiary branch, stated that the adoption of crypto trading and custody services in New York could boost more extensive adoption of digital assets in general.
Despite being an early crypto supporter, Fidelity is not the only major investment company to work in the sector. Abigail Johnson, CEO of Fidelity, confirmed that the company mined cryptos, and their subsidiary brand started “as a funny game.”
The “bit of fun” is now an enormous force, working closely with Intercontinental Exchange Inc., (NYSE’s owner), and CME Group Inc.
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