Estimated reading time: 2 minutes, 30 seconds
Hey everybody! Welcome back to Business on the Blockchain. Today we’re covering Fidelity’s move. Yes, another big hitter is looking to help accelerate the legal recognition of cryptocurrency financial management.
Fidelity is thinking forward
And when I say big hitter in the financial space, this is what I mean. Fidelity Investment is the 4th largest asset management firm in the world. They managed over 2.4 trillion dollars last year.
It would be fair to say Fidelity is one of the most forward thinking financial managers when it comes to the blockchain and cryptocurrency. All the way back in 2015, they saw the potential of cryptocurrency, which led them to trademark the term “FidelityCoin.” When 2017 saw the rise of Bitcoin, Fidelity Investment was one of the first financial managers to list a bitcoin price index on their website.
Fidelity is following the model of Circle, and now Coinbase, who are now seeking full SEC recognition. These organizations are doing their best to comply. They are in a unique position because they are the heavy hitters in the space who can afford the legal fees and research that is involved in entering these new and growing fields.
Complying with the SEC
We’ve seen businesses run parallel to the SEC, in that they are following regulations, but not exactly registering with the SEC. This model has been utilized by ICOs, figuring that if they comply with the SEC, when it’s time to become legitimate the SEC will look more favorably upon them.
With any regulated profession there is some framework concerning certification. In this case, it’s the classification of broker-dealer. This is basically is a brokerage firm that buys and sells securities on its own account as a principal before selling the securities to customers. Getting that classification would be huge for a cryptocurrency project such as Fidelity Investment. This will bring a whole new slew of products and services to the cryptocurrency world.
Fidelity has instant brand recognition that will bring legitimacy to cryptocurrency. If you haven’t figured it out by now, they have been trailblazers in the space before. And guess what? Fidelity has not been too wrong when it takes a leap into a new space. This is a move that definitely bodes well for business on the blockchain.
Business on the Blockchain is a new series aimed at keeping you up to date on all of the big business moves towards blockchain technology. More and more businesses are exploring cryptocurrencies and blockchain. We’re here to help you understand how some of these businesses are making this transition. It’s an exciting time for blockchain adoption, check out which businesses are jumping onto the wave!
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