The Canadian government has approved Fidelity’s application to become Canada’s first bitcoin custodian. As a result, other Canadian institutions may be enticed to invest in cryptocurrencies due to the move. Furthermore, the move comes after Fidelity released a statement claiming that interest in digital assets in the country has skyrocketed.
Approval of Integrity
The Investment Industry Regulatory Organization of Canada (IIROC) has given Fidelity permission to develop a new Bitcoin trading and custody platform for institutions like pension funds, portfolio managers, mutual funds, and exchange-traded funds (ETFs).
The demand for investing in digital assets is increasing, according to Scott Mackenzie, president of Fidelity Clearing Canada, and institutional investors have been looking for a licensed dealer platform to access this asset class.
Fidelity Clearing Canada serves nearly 100 investment businesses in Canada. They also work with Fidelity Investments Canada ULC to manage assets totaling more than $222 billion.
Bitcoin has had a $98 million inflow in the last seven days, pushing its total assets under management to a new high of $56 billion.
The Road to Bitcoin Legalization
Many Bitcoin funds in Canada now use custodians situated in the United States. Fidelity’s approach could make things easier for customers by allowing more institutional investors to acquire Bitcoin directly.
Furthermore, with the launch of the new platform, Fidelity Canada will be the first corporation to enter the Bitcoin industry. On the other hand, Fidelity Investments Inc has been experimenting with bitcoin for quite some time.
Institutional investors are beginning to explore methods to profit from the booming cryptocurrency market in recent years. For example, following comparable product launches in the US the year before, Fidelity Digital Assets introduced a Bitcoin custody and trade execution service in 2018.
According to a press statement from Fidelity, the company’s entry into the US market gave it a four-year window to launch bitcoin services.
Finally, the company aspires to become a “one-stop-shop” for all things Bitcoin, complete with a cryptocurrency exchange and wallet. The platform will be focused on Bitcoin and other digital assets such as non-fungible tokens (NFTs).