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Market Analysis Report (11 Dec 2020)

Date:

Fidelity Digital Assets will reportedly start letting its institutional customers pledge bitcoin as collateral against cash loans, thanks to a new partnership with blockchain startup BlockFi.

The firm will hold the BTC pledged as collateral but will not make the loans itself. Fidelity Digital Assets, it’s worth noting, is a unit of Fidelity Investments, which has over $3.3 trillion in assets under management.

Tom Jessop, president of Fidelity Digital Assets was quoted as saying that the target is bitcoin investors who want to turn their BTC holdings into cash without selling the flagship cryptocurrency, and potential customers may include hedge funds, over-the-counter trading desks, and cryptocurrency miners.

Fidelity has said institutional interest in the space is rising, and a survey it conducted earlier this year found 36% of respondents had cryptoassets in their portfolios. More than six out of 10 showed interest in bitcoin and other cryptos, up from 47% from a survey conducted last year.

Source: https://www.cryptocompare.com/email-updates/daily/2020/dec/11/

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