Fidelity reaches a milestone – Fund manager Fidelity is preparing to offer collateralized bitcoin loans to its institutional investors. For this, the company has partnered with the historic BlockFi.
Collateralized loans in cryptos
Strong sound authorization to operate a crypto custody service in New York State, the fund manager Fidelity Digital Asset wishes to expand its offer.
Indeed, according to information relayed by Bloomberg, Fidelity is about to propose crypto collateral loans to its investors institutional. The latter will thus have the possibility to seal bitcoins to obtain a loan in fiat currency.
In fact, the collateralization rate for these loans has been set at 60%. This means that for every 1000 dollars of collateralized bitcoins, 600 dollars of loan can be taken out. However, this rate may be variable according to customer needs.
To carry out its project, Fidelity has partnered with the company BlockFi, which already offers crypto loans. She will then take care of the garde of precious BTC, and BlockFi will be the company issuing the loan.
« As the markets grow, we expect this to become a relatively large component of the ecosystem. »
Tom Jessop, President of Fidelity Digital Asset, at Bloomberg
Bitcoin, the new El Dorado for institutional investors
This new service makes sense in the light of thegrowing interest institutions vis-à-vis cryptocurrencies.
Indeed, according to a survey carried out this year by Fidelity, 36% of respondents hold cryptocurrencies. In addition, more than 60 % expressed interest in bitcoin, an increase of 13% compared to a survey conducted in 2019.
It remains to be seen whether demand will actually follow for these new kind of services, but the signal sent is in any case very positive!
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