The Strategist

Fidelity Investments takes interest in blockchain and crypto currency

09/20/2018 - 15:20

Fidelity Investments started creating services for crypto assets, and the New York State Attorney General's Office is concerned about the level of investor protection on crypto-exchanges.

The American financial corporation Fidelity Investments is developing new services in the field of blockchain and crypto currency, the company’s CEO Abigail Johnson said, adding that some solutions will be submitted already this year.

"There are several things that are on the way to implementation, several products that are partially ready, but for now are standing on the shelf, because their time has not yet come. We tried to listen to the market and understand what would be most appropriate," said Abigail Johnson.

According to her, the company's new solutions will take into account the current market needs.

She also noted that Fidelity Investments "never planned" to earn money on the services provided related to crypto-currencies.

Abigail Johnson believes in the potential of digital currencies and shows interest in crypto currency mining and blockchain technology, as repeatedly stated in media interviews.

In June, it became known that Fidelity Investments plans to create a crypto exchange and is working on solutions for storing digital assets. However, Johnson did not give additional comments on this score.

Meanwhile, the New York State Attorney General's Office in its report on integrity of the virtual currency market concluded that crypto currency exchanges are vulnerable to market manipulation and do not have standard consumer protection methods that are available in traditional financial markets.

The agency also reported that it sent data on several exchanges to regulatory organizations in connection with possible violation of laws.

The 32-page report by Attorney General Barbara Underwood was published on Tuesday. The paper tells about issues such as "transparency, integrity and security" of crypto-currency trading. According to the findings, the exchanges are not particularly concerned about protection of investors.