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Fidelity Investments bridges with cryptocurrency exchange ErisX to expand into retail market, deepening trading liquidity.

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Fidelity Investments bridges with cryptocurrency exchange ErisX to expand into retail market, deepening trading liquidity.

Despite the global financial markets being ravaged by the novel coronavirus this year, multinational financial institution Fidelity appears to remain optimistic about the potential of cryptocurrencies. Its cryptocurrency division, Fidelity Digital Assets (FDAS), continues to expand, with the recent announcement on the 9th of a collaboration with the cryptocurrency exchange ErisX to deepen its asset trading liquidity.

  • Fidelity continues to expand its presence in the cryptocurrency field
  • Fidelity formally integrates with a cryptocurrency exchange for the first time

Entering Cryptocurrency Custody and Trading with Inherent User Advantage

Fidelity Digital Asset Services (FDAS), a subsidiary of Fidelity Investments, has officially integrated a cryptocurrency exchange for the first time. While FDAS has been providing bitcoin custody services for institutions and has a trading platform, it has lacked sufficient liquidity. Through accessing the spot market on the ErisX platform, FDAS users will be able to address the issue of insufficient trading depth.

A spokesperson for Fidelity commented on the partnership:

ErisX is the first exchange activated by Fidelity Digital Asset Services, and we are also one of the investors in the exchange.

ErisX CEO Thomas Chippas stated: "We believe in equal access for all, which is a core tenet of cryptocurrencies. We also aim to create a fair competitive environment for everyone."

It is reported that ErisX is also integrating with major brokers, including Los Angeles-based securities firm Wedbush Securities and renowned US stock brokerage firm TDAmeritrade.

Earlier in February, Fidelity made another investment where on February 12, they invested 110.5 million Hong Kong dollars (approximately 14.2 million US dollars) into the Hong Kong-based cryptocurrency exchange OSL.

What Is ErisX

Chicago-based cryptocurrency exchange ErisX raised $27.5 million in its Series B funding in December 2018, with major institutions such as Bitmain, Fidelity, Monex Group, TD Ameritrade, and others participating. On July 1st last year, they were granted a Derivatives Clearing Organization (DCO) license by the Commodity Futures Trading Commission (CFTC), allowing them to legally offer cryptocurrency futures contracts to investors.

A spokesperson for Fidelity Investments stated: "We continue to attract new users every month, and in recent weeks, we have seen a growing trend in the overall cryptocurrency business, especially discussions around value storage and digital gold resonating with a wide range of investors."