The financial giant will now allow its customers to trade bitcoins, although they will not be able to withdraw them into their own custody.
Fidelity Investments customers can now buy bitcoins through brokers. The Fidelity Crypto platform, first opened to a waiting list in November 2022, is now available to the public, starting yesterday.
Customers can buy and sell bitcoins, although they won’t be able to transfer them to their own custody wallets where users control their private keys. During the opening of the waitlist, there is mention it of this ability comes later, but no detail or roadmap has been provided beyond that.
When trading, customers will not be charged a “fee,” but a 1% spread, defined by Fidelity as “the difference between the price at which you buy or sell crypto in your Fidelity Crypto account and the price in Fidelity Digital Assets. filling your order.” This spread will be reflected in the client’s execution price.
Trading will only be available to US citizens over the age of 18 in eligible countries.
Fidelity’s foray into cryptocurrency has not been without criticism, with a group of senators, stating in a letter to the financial firm:
“Fidelity Investments has chosen to expand traditional finance and explore the volatile and increasingly risky digital asset market.”
But that apparently didn’t stop Fidelity.
While the introduction of these services to the public is welcome, especially in times like the current banking crisis, more emphasis should be placed on retention. Confidence in large institutions, similar to Fidelity, led to the apparent failure of the past week.
So, while Fidelity is often considered a very trustworthy institution, it should be noted that trusted third parties are a security hole, and the only true way to use bitcoins sovereignly is by holding your own private keys.