- Fidelity Digital Assets and Stack Funds have announced a new partnership to bring cryptos investments to high net worth investors in Asia.
- Stack will leverage Fidelity’s risk mitigation expertise to offer cryptos investment options to its exclusive client base.
- The partnership is the latest in a series of upward institutional moves.
Fidelity Digital Asset Services has announced a new partnership with the Stack Funds digital investment platform to meet the demand for crypto investing by high net worth individuals in Asia. Based in Singapore, Stack Funds will bring Fidelity’s crypto custody services to its exclusive list of Asian clients.
In a statement provided to Bloomberg, Stack Funds revealed a growing demand for crypto investment services from HNIs and family offices in Asia.
The company hopes to leverage Fidelity’s reputation and proven ability in the secure storage of digital assets to meet the growing demand and further popularise crypt investment in the region.
Symbiosis of the Fidelity Digital and Stack Funds partnership
According to Stack co-founder Michael Collett, the partnership is expected to attract investors because of 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 views the partnership as part of a broader strategic move into the digital asset space. In August, the company revealed that it was launching a Bitcoin-only fund for 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 director Christopher Tyrer said;
„There is a critical need for platforms that have a deep understanding of what local and regional investors are looking for. This] has always been lacking in the digital assets space. »
Stack Funds: Fidelity’s services and reputation in traditional markets are a welcome addition to our current and future range of products for institutional investors.
Bloomberg Crypto: A new partnership for Fidelity Digital Asset Services aims to facilitate the growing interest in cryptography among Asian investors https://trib.al/d3120Lk
Adoption of crypto on the rise
After an eventful year that included a drop in the price of Bitcoin to $3,800 in March, investment in crypto-currency and consumer adoption already exceeds the levels seen in the bull run of 2017 in some respects.
On October 4, BeInCrypto reported that MicroStrategy CEO Michael Saylor had transferred $425 million of his company’s cash into Bitcoin, describing it as „an asset harder than gold“.
Speaking to Bloomberg, Collett said:
„This year has been a difficult year in terms of attracting people to Bitcoin, as it has not covered itself in glory in the market downturn. Since the dark days of March, enquiries have resumed. »
Speaking on October 27, channel analyst Willy Woo revealed that while the crypto world is waiting for Bitcoin to return to its 2017 peak, its Network Value Transaction (NVT) ratio is already at a record high. This, he said, will inevitably be followed by a price hike.
Several notable financial institutions, including PayPal, have been gambling to enter the crypto space.