The cryptocurrency community has long wondered when the highly sought after “institutional money” would enter the space. With Fidelity preparing to launch a platform for cryptocurrency investing, major institutions may finally start their bitcoin stampede.
Fidelity’s CEO Abigail Johnson described the project and its goals in a recent press release.
“Our goal is to make digitally-native assets, such as bitcoin, more accessible to investors. We expect to continue investing and experimenting, over the long-term, with ways to make this emerging asset class easier for our clients to understand and use.”
Tom Jessop, the head of corporate business at Fidelity is excited about the prospect of what digital asset investing could bring to Fidelity’s customers and the rest of the economy and sees now as the perfect time for major institutions to enter the crypto scene.
“A lot of the effort over the last 6 to 9 months has been taking what had already been built and elevating it to a level in which we were comfortable to go to market. While there are many places for consumers to buy and trade crypto, we didn’t see analogous developments for institutions. We made a decision to move in this direction, and that has been validated by the prospects we are talking to now.”
Many experts have long predicted the wave of institutional investors would be near and that it would trigger a potential bull run of hundreds of billions of dollars entering the cryptocurrency markets. The public excitement it is sure to be taken up a notch as well and a FOMO spiked bull run could be the result.
Stellar (XLM) is one of the digital assets that could see the greatest growth resulting from the wave of institutional investors. Stellar Lumens is an open source network that allows people to create financial products at low cost and was built to bridge the cryptocurrency world to the traditional financial sector.
As more institutional investors follow in Fidelity’s footsteps, a need will be generated for connecting a variety of assets of different values with different means of operation and networks like Stellar Lumens will be in demand.
Most importantly, an institution such as Fidelity making a move to the cryptocurrency sector brings a heightened sense of legitimacy and can act as a catalyst for building trust and reliability to the space.