Visa and Fidelity Crypto Services Target Institutional Investors
in Crypto News
Bitcoin, once dismissed as a worthless digital asset favored by criminals, now bears all the hallmarks of institutional acceptance.
The tectonic plates that previously shed a terrible light on BTC during its first decade of existence have shifted as billions worth of institutional capital flood into the crypto sphere.
Helping Clients Navigate the World of Cryptocurrencies
New York-based Fidelity Digital Assets (FDA) has partnered with the crypto lender and savings firm Nexo to take advantage of the growing institutional inclination toward the crypto space.
As per the press release, Nexo will use FDA’s existing management infrastructure to open its doors to institutional investors.
The two firms have crafted a partnership to expand the existing DeFi space with Bitcoin-backed loans. Furthermore, these giant investors will enhance Nexo’s existing “military-grade” security system with fresh custodial layers.
FDA’s head for Europe, Christopher Tyrer, said:
“We’ve seen tremendous growth of interest in digital assets from institutions within the European market, and we’re committed to implementing sophisticated solutions to match those available with traditional asset classes.”
Not to be left behind, the world’s largest payment processor, Visa, recently launched a global crypto advisory service targeting its banking clients and merchants. The service will help its clients navigate the world of cryptocurrencies and facilitate buying, selling, and custody through its banking partners.
The firm said that the initiative is meant to attract or retain financial institutions whose customers are interested in crypto offerings, central banks exploring digital currencies, and retailers interested in joining the Non-Fungible Tokens (NFTs) bandwagon.
Visa’s service will be housed within its consulting and analytics division which will incorporate cryptocurrency education and help manage backend operations.
An Ongoing Paradigm Shift
Sporadic surveys have shown that the number of growing institutional investors allocating a percentage of their portfolios to cryptocurrencies is increasing steadily.
In a recent survey, Fidelity Digital Assets found that 70% of institutional investors were open to buying or investing in digital assets in the near future. Over 50% of the 1,100 respondents said that they already owned such investments.
In its survey, Visa found that most banks’ interest in digital assets was pegged on remaining competitive. At least 40% of cryptocurrency investors told Visa that they would quickly switch their allegiance to a bank offering crypto-related products within 12 months.
The financial services sector is undergoing a paradigm shift due to ever-changing customer expectations and preferences that are redefining how financial institutions deliver their services. Numerous factors have caused this including Bitcoin’s outstanding performance compared to other asset classes.
The ongoing stampede among institutional investors into the crypto sphere is nothing but staggering. Paul Tudor Jones must have foreseen this when he said in May 2020:
“At the end of the day, the best profit-maximizing strategy is to own the fastest horse […] if I am forced to forecast, my bet is it will be Bitcoin.”
This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.