The cryptocurrency department of Fidelity strengthens its presence in Asia for the sake of rich customers
cryptocurrency department of financial holding Fidelity Investments expands its services in the Asian market in search of wealthy clients
Fidelity Digital Assets, the cryptocurrency department of the famous financial services provider Fidelity Investments, is increasing its presence in the Asian market, Bloomberg writes. It is reported that the decision to expand its presence in the Asian region is associated with an increase in demand for cryptocurrencies among local wealthy investors and family offices. Which cryptocurrencies will be available to Asian customers of Fidelity Digital Assets remains unknown.
Increasing Customer Confidence
As part of the expansion of services, Fidelity entered into cooperation with the Singapore company Stack Funds, focused on cryptocurrency storage services. The head of Fidelity Digital Assets Europe said that the partnership with Stack is connected with the desire to reduce cryptocurrency risks in the Asian market:
“There is an urgent need for platforms that have a deep understanding of what local and regional investors are looking for [which] has historically been lacking in the space of digital assets,” Tyrer said.
Stack states that all assets in storage are subject to a monthly audit, and are also protected by insurance.
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Diversification tool
These are not the first actions of Fidelity aimed at attracting wealthy customers to the cryptocurrency market. In August, the holding announced the launch of a passively managed Bitcoin fund for wealthy investors.
In addition, the company believes that Bitcoin in the next couple of years will be able to survive economic downturns better than stock markets. Analysts at Fidelity Digital Assets found that adding just three percent in Bitcoin to the investment portfolio from January 2015 to September 2020 would increase annual profit by more than 4%. Despite the increase in volatility of such portfolios, the yield on the inclusion of Bitcoin increased significantly, covering all possible risks, the company emphasized.
At the time of writing, the price of Bitcoin BTC/USDT is $13 104.
