Fidelity Just Did A Major Move - Now Allowing Customers To Obtain Cash Loans With Bitcoin Collateral

Fidelity Digital Assets now revealed a an exclusive contribution that empowers consumers on Fidelity’s institutional-grade digital asset's custody platform to pledge bitcoin as collateral in a transaction.

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The exceptional potential marks Fidelity’s entrance into the digital asset economic area, establishing and expanding Fidelity Digital Assets’ existing custody contribution, which prevails integrated with a trade execution venue for customer liquidity needs. In partnership with that introduce of the collateral agent capability, BlockFi, a leading cryptocurrency lending platform and a CME Bitcoin Futures Block Liquidity Provider, will occur to provide its institutional customers the choice to custody bitcoin pledged as collateral in their cash loans on Fidelity’s platform. Fidelity Digital Assets proceeds to evolve out its contribution to receive more of the services that institutions expect from traditional asset classes, sparking new growth opportunities that prompted a recently announced hiring initiative.

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“The business and market momentum we’ve seen this year have reinforced our belief that institutional investors are looking for a more comprehensive offering in the digital assets space, and we look forward to continuing to evolve our platform to meet their needs and deliver even greater value to our clients.

“We continue to see demand for increased capital efficiency from institutions that maintain long bitcoin positions, and with this collateral agent capability, our customers seeking that efficiency can access more opportunity with the capital that they trust us to keep safe,” said Christine Sandler, head of Sales and Marketing for Fidelity Digital Assets. “For Fidelity Digital Assets, this is an exciting first step into supporting the thriving lending market for digital assets and deepens our relationships within the digital assets ecosystem with leading firms like BlockFi which allows us to provide even more institutional-grade solutions to investors in this space.”

“We're thrilled to be collaborating with Fidelity Digital Assets to help facilitate capital efficiency within their robust digital asset management platform,” said Zac Prince, CEO and founder of BlockFi. “Having an ability to finance positions is a critical component of financial services infrastructure and this collaboration reflects an exciting development for the digital asset ecosystem.”