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Canada approves CAD222B backed firm for BTC custody services


www.cryptopolitan.com 18 November 2021 09:52, UTC
Reading time: ~3 m

  • Canadian regulator, Investment Industry Regulatory Authority (IIROC), has okayed the country’s first Bitcoin (BTC) custody service.
  • Fidelity Clearing Canada (FCC) got the regulator’s nod yesterday; it targets institutional investors.

Canada has approved an application by a CAD 222 billion-backed firm to offer BTC sale and custody services. Canada’s IIROC greenlit FCC’s request making it the first to provide the service in the country.

The news will come as a relief for Canadian investors. Previously they’d have to seek the service outside Canada. Most would do so from BTC custodians operating in the US. But now they can invest directly through a local firm.

FCC will be targeting institutional investors with the new product. Among those, it’s seeking to attract are pension funds and asset managers. Others are Mutual Funds and ETFs with interests in BTC.

The development has caused excitement within Canada. Pundits now believe that FCC’s approval opens the space for the entry of more institutional players.

FCC’s president Scott Mackenzie is equally thrilled by the approval. Mr. Mackenzie termed the approval a “very exciting development” for FCC, its clients, and institutional investors in Canada.

He added that there was surging demand for crypto investment products. Further, institutional players were looking to invest in them through authorized platforms, and to him, FCC was that platform.

A boon for corporate investors in Canada

Mackenzie reiterated FCC’s excitement at offering the new product to the Canadian market. Mackenzie further stated that they’d use their rich experience and knowledge to enrich their investors’ experience.

FCC’s BTC custody service will be a boon to Canadian investors. First, it’ll expose them to cutting-edge innovation. FCC has developed it using Blockchain(BC) tech and the high standards in its other platforms.

Secondly, they’ll benefit from FCC’s expertise in BC and digital asset management. Since 2014, the firm’s parent company Fidelity Investments has blazed the trail in crypto investments.

Finally, the investors can tap into FCC’s Advantage, an internally curated crypto trading, and custody solution. The FCC advantage eases their access to BTC trading and custodial services securely.

Corporate investments in crypto are soaring

FCC’s approval comes at the backdrop of a growing institutional interest in BTC investments. A recent CoinShares report corroborates this information. It shows that institutional players are dominating capital inflows into BTC investments.

It also follows BTC’s recent impressive run. At one point, the king coin attained an ATH of over $68,000. It has also recorded inflows exceeding $90 million, while its assets under management topped $56 billion.

FCC isn’t wasting time either. It has sought licenses for two BTC-based funds. One is a BTC ETF, and the other is a BTC-backed mutual fund. When approved, the ETF will leverage the firm’s custodial service platform.

Crypto-backed ETFs have been on the rise since the first BTC ETFs premiered in February. Today up to forty such products are awaiting regulatory approvals in the United States only.

FCC’s new platform marks the firm’s entry into BTC investment. That said, its parent company Fidelity Investments Inc is no stranger to the space. It has been offering the same service to its US customers since 2018.

Fidelity Digital Assets has been providing American corporate investors with not only BTC custody but also exchange services.


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