Fidelity’s Cryptocurrency Arm Taps Singaporean Startup Fir Its Asian Expansion

By Emily Rys | November 4, 2020

Fidelity Digital Asset has entered into the Asian cryptocurrency market via a partnership with Stack Funds.

Fidelity Investments is bent on expanding its global presence in the cryptocurrency industry. The asset manager’s crypto arm Fidelity Digital Asset Services has entered into a partnership with a Singaporean firm to expand its custodial services in the region.

Fidelity Digital Asset (FDA)has recently partnered with Singaporean-based startup Stack Funds to help the U.S.-based firm expand its cryptocurrency custody services in Asia, Cointelegraph reported. Stack Funds describes itself as Asia’s leading provider of Bitcoin funds and cryptocurrency index funds.

The move will help Stack Funds tap into the higher-end segment of the cryptocurrency market with the added appeal brought by the involvement of the Fidelity subsidiary. The Singaporean firm aims to bring FDA’s crypto custodial services to Asia’s nigh-net worth individuals and family offices.

“We are pleased to utilize the custody services of Fidelity as we see a large uptick in demand for digital assets from traditional investors across Asia,” Stack Funds co-founder and chief operating offer Matthew Dibb told CoinDesk.

Meanwhile, Stack Funds co-founder Michael Collett noted that while the crypto market dipped early this year with the onset of the coronavirus pandemic, things have started to pick up since March’s downturn. “This year has been tough as far as getting people into Bitcoin because it didn’t cover itself with glory in the market downturn,” Collett said. However, he also added that “since the dark-dark days of March we’ve had inquiries pick up again.”

Aside from using Fidelity’s brand in attracting high-net-worth clients, Stack also plans to assure them with its risk mitigation strategies. For instance, the firm said that assets will be subject to monthly audits and will be protected with insurance coverage. For convenience, the firm will also allow weekly redemptions and contributions.

For Fidelity Digital Assets, its partnership with Stack Funds will give it the necessary experience for successfully dealing with peculiarities of the Asian market. “There is a critical need for platforms which have a deep understanding of what local and regional investors are looking for” that “has historically been lacking in the digital asset space,” Fidelity Digital Assets Europe head Christopher Tyrer said in the statement.

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