Fidelity Licensed To Trade Bitcoin

Would you buy Bitcoin for your retirement?

Fidelity Investments thinks you might.

Fidelity-Bitcoin

With the Big 3 investment firms recently dropping their trading commissions to $0, they are looking for other ways to make a buck.

So, a Fidelity subsidiary has recently become licensed in New York to “launch a digital currency custody and execution platform on which institutional investors and individuals can securely store, purchase, sell, and transfer bitcoin.”

The Financial Times reports that this sub is a New York trust company that will be supervised by the NY State Department of Financial Services that will build on the parent company’s reputation to lend credibility and stability to the maturing digital asset ecosystem.

This ecosystem remains fragile due to continuing hack attacks, market manipulation, exchange outages, scams and outright theft of Bitcoins. Moreover, the market for Bitcoin is extremely volatile and a recent report suggested that one party controls the price at any particular time.

New York has issued 23 licenses to trade virtual currencies, promoting itself as the center of the digital asset universe.

All good? Time will tell.

https://www.ft.com/content/eb3fce1c-0a80-11ea-b2d6-9bf4d1957a67

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
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