A London-based money manager announced that it will use Fidelity Digital Assets as the custody provider for its new Bitcoin fund. We assess the significance of Fidelity’s market expansion in the space.
Fidelity Digital Assets has landed on Europe’s shores. London-based Nickel Digital Asset Management (NDAM) said that it will use Fidelity’s custody service when it launches its second cryptocurrency fund, Nickel Digital Gold Institutional. The fund will only hold Bitcoin.
This announcement marks the first customer for Fidelity’s European digital assets business, which officially launched in December 2019. Just as it does in the US, the company offers custody and trade execution for digital assets like cryptocurrencies.
Institutional investors in digital assets use custody providers like Fidelity to centralize the storage of their investments and help keep them secure against the risks posed by cybercriminals – in 2019 alone, over $4B in digital assets were stolen from users and exchanges, according to CipherTrace.