Fidelity (Fidelity Clearing Canada ULC), a privately-owned investment manager, has received approval from the Investment Industry Regulatory Organization of Canada (IIROC), the Canadian regulatory body overseeing the country’s financial firms.
The approval effectively positions Fidelity as the country’s first Bitcoin custodian. The move opens Fidelity’s services for Canadian financial institutions to invest in Bitcoin, with the inclusion of pension funds, mutual funds, and exchange-traded funds (ETFs).
“The demand for investing in digital assets is growing considerably and institutional investors have been looking for a regulated dealer platform to access this asset class,” shares Scott Mackenzie, president of Fidelity Clearing Canada.
According to a statement released by the investments firm, its institutional digital asset trading and custody solution will be available for all qualified institutional investors who are seeking direct exposure to Bitcoin ($BTC), the alpha cryptocurrency.
“[FCC] and our clients are experiencing tremendous growth and success based on continuous investments into our platform and service offerings, coupled with a culture of partnership,” claims Mackenzie, highlighting how Fidelity has doubled its assets under management over the last two years.
Prior to the approval, Fidelity has been providing over 100 investment firms in Canada with its services. Combined with Fidelity Investments Canada, the group represents over $222 billion in assets under management (AUM). Canada already operates a Bitcoin ETF launched by Purpose Investments, which is also the world’s first Bitcoin ETF. However, Purpose Investments uses a U.S.-based custodian for its platform and assets. With this new phase, Fidelity is set to become the default, local custodian for funds operating in Canada.
Fidelity Investments Canada, its investment arm, has also filed a preliminary prospectus with the IIROC, and its proposal for its own operation of a Bitcoin ETF (Fidelity Advantage Bitcoin ETF) and Bitcoin mutual fund ( Fidelity Advantage Bitcoin ETF Fund) is slated for approval from the regulator.
Fidelity’s latest regulatory approval is its first foray into crypto. Notably, Fidelity Investments already had a prior, similar service launched in 2018: Fidelity Digital Assets. The service provided institutional investors with custody and execution services for Bitcoin.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.