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Fidelity Digital Assets Plans To Onboard Crypto Exchange As Liquidity Providers By 2020

Fidelity Digital Assets is expected to sign up its first cryptocurrency exchange before the beginning of the next year.

The information was released by the President of Fidelity Digital Assets, Tom Jessop, in a conversation with CoinDesk a few hours ago.

Fidelity Digital Assets To Sign Up A Crypto Exchange

According to Tom Jessop, the company will have increased the number of liquidity providers to more than double by the end of the current year after launching their trading platform.

He has also mentioned it is very likely they will connect their first crypto exchange before the end of the current year. On the matter, Mr. Jessop commented:

“We are primarily focused on OTC liquidity providers. It’s likely we will connect to our first exchange perhaps before year-end.”

This would allow the company to have better access to the market and higher liquidity for smaller traders in the space. Investors are searching for crypto platforms that provide high liquidity. As Jessop explained, spot exchanges have more activity from small traders and they are more comprehensive than OTC desks.

In general, large traders are those using OTC desks. Exchanges are very useful for smaller traders, small enterprises and also retail investors that want to have exposure to the cryptocurrency market.

The next year is full of plans for Fidelity Digital Assets. The company has recently received a New York State License in order to operate in the state.

At the same time, this license provides them with the necessary trust and credibility that investors are looking for in crypto-related companies. This would allow it to start expanding in the market following the required regulations.

At the moment, there is no information on the clients that the company is onboarding for its trading platform. However, the firm has a client base that includes hedge funds, and other family offices.

The goal is to also leverage its capabilities, improve the services provided, and win licenses in other jurisdictions for it to onboard new clients. Moreover, the Fidelity Center for Applied Technology (FCAT) is also involved in the market by studying the industry and how it works and evolves.

For example, the FCAT has recently completed a proof-of-concept with Tokensoft, a company specialized in token security.