Fidelity Digital Partnership Brings Crypto to Wealthy Asian Investors

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In Brief
  • Fidelity Digital Assets and Stack Funds have announced a new partnership to bring crypto investment to Asia's high-net-worth investors.

  • Stack will leverage Fidelity's risk mitigation expertise to offer crypto investment options to its exclusive clientele.

  • The partnership is the latest in a series of bullish institutional moves.

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Fidelity Digital Asset Services has announced a new partnership with the digital investment platform Stack Funds for the purpose of satisfying crypto investment demand from high-net-worth individuals in Asia. Based in Singapore, Stack Funds will bring Fidelity’s crypto custody services to its exclusive Asian client list.



In a statement provided to Bloomberg, Stack Funds revealed a burgeoning demand for crypto investment services from HNIs and family offices in Asia.

The company hopes to leverage Fidelity’s reputation and demonstrated capacity in the secure digital asset custody space to satisfy the growing demand niche and further popularize cryptocurrency investments in the region.

Fidelity-Stack Partnership Offers Symbiosis

According to Stack co-founder Michael Collett, the partnership is expected to appeal to investors due to the reduced security risk factor of Fidelity’s presence and its own financial controls and investor protections. These protections include monthly asset audits, comprehensive insurance coverage, and weekly contributions and redemptions.

 

Fidelity Investments sees the partnership as part of a wider strategic move into the digital assets space. In August, the firm revealed that it was launching a Bitcoin-only fund to be made available to family offices, registered investment advisers, and other institutions, subject to a minimum initial investment of $100,000.

Speaking to Bloomberg about the partnership, Fidelity Digital Assets Europe head, Christopher Tyrer said;

“There is a critical need for platforms which have a deep understanding of what local and regional investors are looking for. [This] has historically been lacking in the digital asset space.”

Crypto Adoption on the Rise

Following a topsy-turvy year that included a Bitcoin price dip to $3,800 in March, cryptocurrency investments and consumer adoption numbers are in some ways already exceeding levels seen during the 2017 bull run.

On Oct 4, BeInCrypto reported that MicroStrategy CEO Michael Saylor moved $425 million of his company’s cash holdings into Bitcoin, describing it as a “harder asset than gold.”

Speaking to Bloomberg, Collett said:

“This year has been tough as far as getting people into Bitcoin because it didn’t cover itself with glory in the market downturn. Since the dark-dark days of March we’ve had inquiries pick up again.”

Speaking on Oct 27, on-chain analyst Willy Woo revealed that while the crypto world waits for Bitcoin to return to its 2017 highs, its Network Value Transaction Ratio (NVT) price is already at an all-time high. This he said, will inevitably be followed by a price rise.

Several notable financial institutions including PayPal have made market-moving plays to get into the crypto space.

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David is a journalist, writer and broadcaster whose work has appeared on CNN, The Africa Report, The New Yorker Magazine and The Washington Post. His work as a satirist on 'The Other News,' Nigeria's answer to The Daily Show has featured in the New Yorker Magazine and in the Netflix documentary 'Larry Charles' Dangerous World of Comedy.' In 2018, he was nominated by the US State Department for the 2019 Edward Murrow program for journalists under the International Visitors Leadership Program (IVLP). He tweets at @DavidHundeyin

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