Fidelity becomes the first custodian of Bitcoin in the country through its address in Canada. In the US, the entity is still awaiting approval for its BTC ETF.
The American company for asset management and pension funds, Fidelity, received the corresponding license from the regulators in Canada to operate as the first custodian of Bitcoin within the country.
This information comes from various reports indicating that the Investment Industry Regulatory Organization of Canada (IIROC) officially approved Fidelity to release a new platform for the trading and custody of Bitcoin in the country.
This platform will also provide services to entities such as pension funds, wallet managers, mutual funds, and ETFs that want more exposure to digital currency.
In this regard, the president of Fidelity Clearing Canada, Scott Mackenzie, commented that the demand for investment in digital assets is increasing considerably, and institutional investors have been looking for a proper regulated dealer platform to get access to this asset class.
More Options in Canada
The announcement is especially beneficial for the Bitcoin ecosystem in Canada since most of the companies at the local level that operate with the digital currency need this assistance to work with custodians based in the United States of America.
Fidelity’s offering and services in the area will help companies based in the country to operate within it. This offering will also help open the space for more institutional investors to approach the cryptocurrency market as it grows.
A report presented by Fidelity reads that Fidelity Clearing Canada will serve more than 100 investment companies in the country. Along with Fidelity Investments Canada ULC, this entity has at least $ 222 billion or more in assets under administration and management as of the end of June this year.
Fidelity Makes its Way
This situation might open more gateways for the crypto ecosystem in Canada, and Fidelity already has a similar line of services in the US currently waiting for a response from the Securities and Exchange Commission (SEC) concerning the possibility of launching its Bitcoin-based exchange-traded fund.
However, there is no information about the freedom of the company to offer its services in all jurisdictions in Canada, especially in the city of Ontario, where many exchanges and big companies in the crypto sector have experienced problems with local regulators for conducting their operations.
Fidelity was already a leader in low-cost fees, but as of October 2019, the company erased charges for stocks, ETFs, and options. Before that action, the company eliminated nearly all account fees, including transfer and account closing fees commonly charged by brokers.
Fidelity Investments currently leads many businesses, with the main ones being mutual funds and brokerage services. The mutual fund division manages three current divisions: equity, high-income, and fixed income divisions.
The company operates Fidelity Contrafund, the largest non-indexed mutual fund in the United States of America, with over $ 107.4 billion in assets.
By: Jenson Nuñez
