Fidelity Investments Staffing up to Launch Crypto Exchange: Report

  • US investment giant Fidelity Investments is reportedly looking to launch its own cryptocurrency exchange
  • This according to job postings the firm sent its employees, whichreveal it's looking for staff that can help it launch the platform.

US investment giant Fidelity Investments is reportedly looking for talent to help it launch a cryptocurrency exchange that will allow its clients to “buy and sell certain digital assets.” Sources familiar with the matter purportedly revealed the firm has been working on the project for over a year.

According to Business Insider the wealth firm, which manages over $2.5 trillion in assets, has sent employees job postings that reveal it is looking for a DevOps system engineer to “help engineer, create, and deploy a Digital Asset exchange to both a public and private cloud.”

Moreover, the company is looking to staff up its crypto division, the Fidelity Digital Asset Services unit, with workers that can develop a “first-in-class custodian services for Bitcoin and other digital currencies.”

The report cites unnamed sources said to be familiar with Fidelity’s crypto ambitions. While right now Coinbase users can use Fidelity’s platform to check their portfolios alongside other investments, the move would likely see Fidelity directly hold cryptocurrencies.

While launching a cryptocurrency exchange would be one of the biggest moves a prominent Wall Street firm has made into the crypto market, it would put Fidelity Investments in competition with other industry giants, including Coinbase, investment app Robinhood, and Goldman Sachs-backed Circle, which recently acquired Poloniex for $400 million.

At press time, it isn’t clear whether Fidelity Investments’ new cryptocurrency exchange would be available on the firm’s main platform, or whether it would be launched as a separate entity. Similarly, there’s no available information on when it’s set to be launched.

According to Dave Weisberger, a market structure specialist, Fidelity’s move may be a smart one, as it will help legitimize the market and would strategically make sense. He said:

"They have many of the components already: a significant retail footprint across the spectrum of active to less active traders, a prime brokerage area that knows how to account for custody of assets, they operate an ATS already (called 'CrossStream'), and have a reputation for excellence and risk control in their product offerings.”

Dave Weisberger

It’s worth noting Fidelity Investments’ chief executive officer, Abigail Johnson, is a well-known bitcoiner. Last year, she revealed the company internally experimented with cryptocurrencies, and even launched a small mining operation that was “actually making a lot of money,” despite only being there for educational purposes.

At the time, Johnson revealed she is a “believer,” and that she was one of the few “from a large financial services company that has not given up on digital currencies.” The company’s charitable wing, Fidelity Charitable, raised over $22 million in bitcoin last year. At press time, it still allows philanthropists to donate using the flagship cryptocurrency.

eToro Launches Crypto Portfolio That Gauges Market Sentiment

  • eToro is partnering with TheTie to launch a crypto-asset portfolio based upon market sentiment.
  • The algorithm mines social media data to select thirteen crypto-assets for investment each month.

Global crypto investment platform eToro has announced the launch of a new product for crypto investors that will provide access to a sentiment-based portfolio. 

Crypto Market Sentiment Investing

According to the press release shared with CryptoGlobe, eToro is launching TheTIE-LongOnly crypto portfolio for investors, which is the result of a collaboration with the algorithm-driven firm TheTie. The new portfolio uses “highly advanced natural language processing tools” to determine market sentiment towards various crypto-assets, by mining data from social networks and generating an investment algorithm. 

TheTIE is leveraging the day-to-day sway in the crypto markets, stating

The value of digital assets is driven by supply and demand, and movement is determined by the wisdom of the crowd.

Guy Hirsch, US managing director of eToro said the portfolio’s release will give retail investors access to more powerful tools, 

In traditional markets, retail investors have historically lagged behind the ‘smart money’ when it comes to the data and tools available to them. This puts individual investors at a major disadvantage. In the spirit of crypto and decentralized technology, we believe that offering institutional-grade tools to every investor will level the playing field and democratize investing.

The analytics firm reports scanning more than 850 million tweets per day to generate their algorithm for the portfolio, which will be allocated to a subset of thirteen crypto-assets. The minimum investment in the product is $2,000.

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