After a long wait process, Fidelity opened its crypto buy/sell services to its customers.
Fidelity Digital Assets (FDA) is an affiliated subsidiary of Fidelity Investments. FDA is focused on support for its institutional customers’ holdings in digital assets. Initially, Fidelity started its business in the crypto sector as a Bitcoin & Ethereum miner later company planned to expand its support for crypto purchases on behalf of a survey, conducted by Fidelity in 2019 on 441 institutional investors.
Recently Fidelity opened its crypto trade services via a brokerage account system for all of its customers, new as well as old. Interestingly, the investment manager didn’t announce this new service, as a part of marketing.
Now all the fidelity customers are now able to purchase Bitcoin & Ethereum without any charge of commission fee but the firm will charge a spread of no more than 1%.
Regulatory heat in the US
It is worth to note that Fidelity started its crypto purchase services amid the surging regulatory heat in the US.
Over the last month, the top financial regulatory bodies in the United States (US) took action against popular crypto companies like Kraken exchange over the crypto staking services, BUSD issuer company Paxos over the nature of BUSD stablecoin, etc.
Since the last few months, many crypto entrepreneurs said that they are failing to get banking partners in the US citing regulatory pressure on the banks, despite banks being free to provide services to the crypto compamies under the jurisdiction of the US.
Now the regulatory pressure on the US banks is very big, as half a dozen banks reported significant losses because of their services exposure to the crypto companies.
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