Fidelity, one of the largest asset management firms in the world is getting into crypto. The firm will start offering custody and brokerage services for institutional custody for crypto investors in 2019. Here is what Tom Jessop, the head of corporate business at Fidelity had to say about this move in an interview with the Block.
A lot of the effort over the last 6 to 9 months has been taking what had already been built and elevating it to a level in which we were comfortable to go to market. While there are many places for consumers to buy and trade crypto, we didn’t see analogous developments for institutions. We made a decision to move in this direction, and that has been validated by the prospects we are talking to now.
What’s most interesting about fidelity taking an interest in crypto is that their head of corporate business development is the formal head of Chain, the blockchain platform that merged with lightyear to form interstellar. This gives juice to speculation that there is a slight chance that fidelity could move their business to the stellar blockchain. If that happens, then it would be a huge boost to the stellar network. The merger between chain and lightyear already brought in a significant number of financial institutions to the stellar blockchain, and fidelity would be a welcome addition to the stellar blockchain.
The chances of this happening are quite high for a number of reasons. The first one is that at C-levels of management, hires are mainly driven by the networks and clients that the individual can bring to the table. Those networks are usually an asset unto themselves. As such, with a person like Tom at Fidelity, if this giant firm were to move their business to the blockchain, chances are that they would do it on the stellar blockchain. That’s because of the backlinks that he has with stellar and the crypto world. Going by this analogy, then he could also loop in Goldman Sachs since he also has strong networks in this market.
One thing is clear though, with its strong industry connections and a strong tech team lead by Jed, Stellar (XLM) is one of the blockchains that have a strong potential for growth going into the future. Stellar has the potential to take over not just the cross-border payments market, but will also play a huge role in asset tokenization, something that will revolutionize Wall Street.
In the short-term, stellar (XLM) is still one of the more bullish cryptos in the market. In spite of all the volatility in the market at the moment, stellar (XLM) has been stable above $0.20 for months. There is good reason to believe that it could have bottomed out, just like bitcoin has probably bottomed out at around $6400. This means that in the next Bull Run, stellar (XLM) could emerge as a top gainer, with highs of over $5 or more in a bullish market. All it will take is more institutional money coming to stellar, and the indicators are already there that this could happen.