Cryptocurrency News

Fidelity Gets Approval to Launch Bitcoin Custody Service in Canada

Fidelity Canada has made a huge leap in the cryptocurrency market recently. As per a report published in The Globe and Mail, the financial regulators in Canada have finally allowed the investment organization to set up a Bitcoin custodial and trading service for commercial clients. It is worth noting that Fidelity Canada is a subsidiary of Fidelity Investment Inc. based out of the United States.

As of 2021, the HQ of Fidelity boasted an AUM valued at $4.2 trillion. The latest report reveals that the approval has been granted by the Investment Industry Regulatory Organization of Canada or IIROC. The platform has been known to accommodate financial vehicles like ETFs, Pension Funds, mutual funds, portfolio managers, capital ventures, and others that wish to seek direct exposure into the firstborn cryptocurrency.

Scott Mackenzie is the President of Fidelity Canada. He was speaking to the media about the recent development and commented that it was no big surprise. He further explained that in the current financial environment, traditional financial organizations have started to warm up to the idea of cryptocurrency integration.

Mackenzie also added that the demand for regulated cryptocurrency dealers is also increasing in the market to manage the risk with the digital asset market. It is worth noting that most of the Bitcoin custodian providers operating in Canada are based in the United States. Fidelity Canada has managed to bring the option to the mainstream market, which in turn can entice more institutional investors to go onboard the cryptocurrency market.

Fidelity Investment Inc. started Bitcoin custodian services in the same fashion as Fidelity Canada as soon as 2018. The company named Fidelity Digital Assets has gone to facilitate many major financial investment firms with Bitcoin custody and trading services. The media report claimed that Fidelity Clearing Canada is registered with more than 100 investment companies in the region.

The subsidiary hosts $222 billion AUM as of 2021, in association with the Fidelity Investment Canada ULC. Fidelity Canada President Mackenzie claimed that the IIROC had granted the company a four year lead for establishing its infrastructure and building a new digital investment network in Canada.

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