Tom Jessop, president of the Fidelity Digital Assets (FDA), has shown confidence in the potential of cryptocurrencies as the new financial infrastructure.
In an interview with the American daily newspaper Boston Globe, Jessop revealed that he perceives Bitcoin as a true asset class and disclosed that the company has been working on developing a long-term financial infrastructure around the token.
Furthermore, he revealed that the pandemic sparked new interest in investors, leading to an influx of investments in the crypto-space. He said:
“What really got people off the fence was the pandemic, because you’ve got this scarce asset class — there will only ever be 21 million bitcoin created — and an environment where our currency is being debased, and there’s a ton of money printing.”
When prominent investors such as Stanley Druckenmiller and Paul Tudor Jones gave their viewpoints on Bitcoin as a hedge against Inflation, the flame thereafter became the bonfire.
FDA conducted a survey on institutional investors which revealed that over half of the respondents have already invested in digital assets and 71% of the remaining would likely invest in cryptocurrencies soon.
While noting that many of the FDA’s customers are “traditional investors”, Christine Sandler, head of sales and marketing of Fidelity said that over 90 percent of Fidelity’s largest clients were asking about Bitcoin.
Investment in crypto startups
The venture capital division of Fidelity, Devonshire Investors has made investments in various leading startups such as ErisX, Talos, and Boston-based Coin Metrics. Jessop added that these kinds of startups would allow them to keep an eye on what is happening in this ever-evolving market.
Fidelity CEO Abigail Johnson has also attended various startup presentations and lectures to support the space.
The company has recently acquired a 7.1% share in the cryptocurrency mining company Marathon Digital Holdings. Forbes reported that the stake was bought at $20 million.