Fidelity is soon to integrate crypto trading and reports into its advisor workstation.
The RIA Custodian is offering some advisors the opportunity to access the new “Fidelity Crypto for Wealth Managers” By the end of this year, confirmed a spokesperson from the company.
Built on its digital asset custody and trading services—the existing Fidelity Digital Assets division—Fidelity Crypto for Wealth Managers will sit within Wealthscape, Fidelity’s advisor workstation, to provide advisors “a streamlined experience” In response to an email, the spokesperson stated that crypto assets can be accessed and reported on by advisors. Fidelity would be the first large custodian to integrate crypto assets in its native platform.
No official announcement has yet been made about the launch. Tyrone Ross (CEO and founder of Turnqey Labs) noted the development Saturday on Twitter. Ross confirmed that the information he shared on Twitter, which highlighted the service, came from a brochure.
“The funny thing about it is it’s really not even an announcement,” Ross, Mr. “It’s just out. And that’s the beauty of being Fidelity. You don’t even have to announce stuff.”
The Fidelity spokesperson refused to provide the complete presentation when asked directly. “unable to share confidential documents.” Fidelity could change the service or name before launching it to the public.
The presentation says that Fidelity Crypto for Wealth Managers is a new service for advisors. It will be provided by Fidelity Digital Services. Fidelity Digital Services was founded in 2013 to study Blockchain applications within the Fidelity Center for Applied Technology. This division was launched in 2018 with the goal of bringing institutional-level trading and custody of digital assets such as Bitcoin to hedge funds and family offices. “market intermediaries.”
Fidelity Crypto will allow advisors to access crypto trading, execution, and reporting directly from the Wealthscape workstation.
According to the internal presentation of the company, this includes offline cold-vault storing, intelligent order routing for best execution, and real-time settlements. “immediate access to client funds.” The presentation promises trading windows that are open 20 hours per day, seven days a weeks, with no minimum account size. “integrated cross asset-class reporting with third party data vendors,” It is assumed that the client’s cryptocurrency holdings are integrated into their broader client portfolios and performance reports. There will be no extra work for advisors or need to switch platforms.
Wally Okby agreed, the strategic advisor for wealth-management at Datos Insights – recently rebranded Aite-Novarica Group – said this was an important issue. “a big deal” Fidelity, he said, has always been a leader in the digital asset market for retail clients. It was only a matter of time before the company made the move to the advisor channel.
“They’ve been at it for a long time and they’ve kind of tweaked and adjusted their offering to make it easier for traditional financial institutions to offer digital assets to their clients,” Okby, said
Fidelity announced in April 2022 that advisors would soon be able to see digital assets, including cryptocurrencies or at least Bitcoin, included in workplace retirement plans.
Fidelity Crypto for wealth managers also offers a number of benefits “multi-venue liquidity from within a single platform.”
It is unclear which venues will provide liquidity for the service. However, one possible venue could be EDX Markets. Fidelity has invested in EDX Markets along with Charles Schwab Corp. and Citadel, a rival brokerage firm, and RIA custodian. EDX Markets was launched earlier this week as a cryptocurrency exchange for the institutional market, to facilitate trades of Bitcoin, Ethereum Litecoin, and Bitcoin Cash. Unlike other exchanges EDX Markets relies on a third-party to hold assets.
Fidelity has made its move amid a growing storm in the crypto world, which was largely caused by the Securities and Exchange Commission crackdown on the sector.
The SEC has accused Coinbase Global, a crypto exchange that failed recently (FTX), of operating an illegal exchange. In just a few days, the SEC accused Binance – the world’s biggest cryptocurrency platform – and its chief executive Changpeng Zhao of mishandling customers funds, misleading regulators and investors, and breaking securities rules. SEC Chief Gary Gensler repeatedly blamed crypto firms that failed to separate custody functions from market-making, trading, and other functions. This led to conflict of interest.
“The signal I get from folks internally is they’re not really moved by the news. They are the news,” Ross, Mr. “It was on their roadmap, it seems, and it just happened to align with everything that’s going on with the SEC. But, they’re not really impacted by that at all because they’re Fidelity. They’re a regulated entity. They’re not dabbling in all the goofy, crazy coins. They’re keeping it very simple. So, smart by them.”
William Trout of Javelin Strategy and Research’s director of wealth management said that this latest Fidelity Crypto For Wealth Managers move is important because it reflects the importance and value in cryptocurrencies. “momentum in terms of interest in crypto in the wake of the ‘crypto winter.'”
“For an institution like Fidelity that has a very sharp eye on the needs of the retail investor, they are also very astute to sort out the broader landscape including regulatory considerations and it seems regardless of how the SEC proceeds,” Trout is a word that’s often used to describe this fish.
Trout stated that there are efforts to see crypto as a class of asset like any others. “This platform rollout essentially enables that … regularization of cryptocurrency management for the advisor,” He said.
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