On Wednesday, Canadian regulators gave the nod to US investment giant Fidelity Investments to become the country’s first Bitcoin Custodian. Fidelity’s Canadian clearing house, Fidelity Clearing Canada ULC is set to launch bitcoin custody and trading services for institutional investors.
Fidelity announced the news via a press release, where the company stated that it has been licensed by the Investment Industry Regulatory Organization of Canada. The licensed entity can offer its services to institutional investors, including pension funds, portfolio managers, mutual funds, and ETFs.
Until now, asset managers based in Canada used custody services in the United States to make Bitcoin-related investments. However, the authority is now bringing options in mainland Canada, which is likely to expand the user base.
“The demand for investing in digital assets is growing considerably and institutional investors have been looking for a regulated dealer platform to access this asset class,” Scott Mackenzie, president of Fidelity Clearing Canada, said in a statement.
Fidelity Investments Canada ULC has also announced that it has submitted a draft of Bitcoin ETFs and mutual funds called the Fidelity Advantage Bitcoin ETF and the Fidelity Advantage Bitcoin ETF Fund. The Fidelity Advantage Bitcoin ETF will use the FCC custody services mentioned above.
In the United States, Fidelity offers Bitcoin custody services and OTC transactions to institutional investors via its crypto subsidiary Fidelity Digital Asset (FDA).