Cryptocurrencies today moved a step closer to respectability after US fund giant Fidelity took on its first European client in the space.
Fidelity will act as custodian for London based Nickel Digital Asset Management, which runs numerous Bitcoin and cryptocurrency funds for investors.
As custodian Fidelity will be responsible for Nickel’s customers assets, protecting them from theft. It is an important role given the large amount of hacking which takes place in the cryptocurrency markets.
It is the first time a major fund or bank has made such a move in Europe.
Christopher Tyrer, head of Europe for Fidelity Digital Assets, said: “Fidelity has always been tech focused and we have a large incubator focused on cryptocurrency. This has the full backing of chief executive Abigail Johnson who is very interested in this space.”
Fidelity officially entered the space last year, offering its US clients custody and trade execution services.
It is understood Japanese bank Nomura and Goldman Sachs and Northern Trust are also looking at offering custodial services.