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During a recent podcast, Fidelity Digital Assets CEO Tom Jessup provided some insight regarding the venture’s future plans in 2020. Currently, the institutional-focused firm only offers support for Bitcoin. During the next year however, Jessup intends to change that.
Fidelity Digital Assets and Ethereum Explained
Fidelity Digital Assets was established in early 2019. The venture was created by Fidelity Investments — one of the world’s largest financial services provider with 70+ years of experience, more than $7 trillion in client assets under management, and over 1.3 million trades processed each day.
As a provider of a growing number of services involving digital assets, Fidelity aims to bring about the reality “where all types of assets are issued natively on blockchains or represented in tokenized format”. They currently offer cold-storage custody services with an integrated trading service. Their primary focus is straightforward: institutional investors.
During a recent podcast, Fidelity Digital Assets CEO Tom Jessup said the firm could support Ethereum sometime throughout 2020 — so long as customers demand it. Currently, the firm only supports Bitcoin, the most popular digital asset with the largest market capitalization.
The reason they only support Bitcoin seems to stem entirely from the short history of digital assets. During the podcast, Jessup said a lacking timeline creates a significant hurdle when it comes to institutional adoption. Bitcoin clearly has the strongest history, and correspondingly has the highest demand from institutional capital.
Ethereum on the other hand, has a shorter history which is the primary reason it has no existing support from Fidelity. During the podcast, Jessup said,
“How do I know that if I buy this thing, it’s gonna be around tomorrow? Like what indication of durability or longevity do I have based on the fact that the history of this asset is 10…