Fidelity plans to double its staff and offer Ethereum custody


Blockchain Engineers, Developers, and Programmers are in high demand as Bitcoin and Ethereum continue to struggle in the market. Fidelity now offers Ethereum trading and custody services following the launch of a similar service for Bitcoin. The company also plans to double its workforce in 2022 as demand for digital assets returns.

Over 100 new employees, including engineers and developers with blockchain expertise, will join the company. Most likely, the company is preparing to expand its cryptocurrency infrastructure. The expansion plans follow Fidelity’s announcement that it will invest retirement funds in Bitcoin later this year. It will make it the first major retirement plan provider to do so.

Fidelity infrastructure in trading crypto

Fidelity, a digital asset, launched just before the bull run in 2021. The subsidiary is creating infrastructure to support Ethereum custody and trading services. People can trade and store massive amounts of Bitcoin or any other digital asset on this platform.

The platform’s data and applications storage are in the cloud, speeding up transaction processing and providing 24-hour trade support. Fidelity aims to provide an institutional level of security as users grow. A massive correction in the cryptocurrency market has had little effect on institutional investors’ willingness to buy risky assets.

According to Fidelity’s Jesson, the company focuses on long-term indicators showing that purchasing power will return to the market. Blockchain engineers and developers are in high demand despite the current economic climate.

Fidelity Investments is confident about the future of cryptocurrencies

On Tuesday, the cryptopolitan reported that Fidelity Investments would allow investors to put bitcoin (BTC) in their 401 (k) retirement savings accounts later this year. Employers could set a cap on the percentage of savings they allocate to bitcoin, with a maximum of 20% expected. First-time investors could benefit from the move. Here is why:  They would no longer require to open a separate account on a cryptocurrency exchange.

Companies in the United States sponsor 401 (k) retirement plans into which their employees can deposit a portion of their earnings. It comes with the possibility that their employers will contribute a matching amount. An automatic withdrawal and investment of contributions from employees’ paychecks in the funds of their choice, allowing them to receive a tax break.

Fidelity’s retirement accounts generate a lot of revenue. According to research firm Cerulli Associates, they held an estimated $2.4 trillion in 401 (k) assets in 2020 or more than a third of the market. Fidelity’s 401 (k) accounts would charge between 0.75 percent and 0.90 percent of the amount invested in bitcoin, depending on the employer’s amount. At this writing, the exact additional trading fee is unknown. Fidelity aims to supply resources and educate investors.

Partnerships with financial institutions

MicroStrategy, a company specializing in business analytics, is on board with the initiative. The company has billions of dollars invested in bitcoin, and its founder frequently tweets outlandish ideas about the currency.

Since 2018, Fidelity has been one of the first major financial institutions to warm up to bitcoin as an asset class. In November of last year, Fidelity launched Canada’s first regulated bitcoin custody and trading service for institutional investors. After that, in December, the Toronto Stock Exchange launched two publicly traded bitcoin funds. Fidelity introduced similar products to Switzerland and Germany this year.

Meanwhile, not everyone is onboard with firms offering bitcoin exposure in their 401 (k) offerings. The US Labor Department expressed “serious concerns” about retirement plans offering cryptocurrencies in March 2022. It warned that cryptocurrencies were speculative and volatile trading investments with an inflated valuation directive.

The agency emphasized that providers must provide adequate information to potential investors about the risks involved, mainly in cryptocurrency investing. This includes volatile prices and the ever-changing regulatory environment.

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