Mathew Di Salvo

Fidelity Digital Assets will partner with blockchain startup BlockFi to give its customers the option to use Bitcoin as a collateral against cash loans, according to reports. 

The cryptocurrency-focused wing of financial services giant Fidelity will allow Bitcoin investors to turn their holdings into cash without selling, _Bloomberg_ reported today. 

_Bloomberg_ quoted the president of Fidelity Digital Assets, Tom Jessop, saying that holding Bitcoin to back loans will become “a fairly important part of the ecosystem.”

The institutional clients of Fidelity will need a BockFi account in order to get a loan. It will be the first time Fidelity will use Bitcoin as collateral. 

Bitcoin volatility will be managed by BlockFi with cash worth 60% of a loan backed by the digital asset.  

Fidelity reportedly expects customers for its Bitcoin-backed loans to likely be hedge funds, crypto miners and over-the-counter trading desks.

 Fidelity Is Taking Its Crypto Biz Into the Asian Market

US investment giant Fidelity has long praised the biggest cryptocurrency by market cap and has urged investors to get involved.  The firm in October announced that it would team up with Singaporean startup, Stack Funds, in order to get Asia’s high-net investors involved in crypto. 

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.

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<span data-sheets-value="{&quot;1&quot;:2,&quot;2&quot;:&quot;Bitcoin (BTC) is a peer-to-peer cryptocurrency, originally described in a 2008 paper by the pseudonymous Satoshi Nakamoto. Launched in January 2009, it was the world’s first cryptocurrency, and remains the most popular, with the highest market capitalization of all cryptocurrencies.\r\n\r\nBitcoin was built on several key innovations. Firstly, Nakamoto guaranteed that Bitcoin transactions were immutable, by recording all transactions on a distributed ledger known as a blockchain. Secondly, he ensured Bitcoin’s scarcity by capping the total number of Bitcoin in existence at 21 million. Finally, the community was incentivized to verify transactions by receiving rewards in the form of “mined” Bitcoin for checking the accuracy of the blockchain.\r\n&quot;}" data-sheets-userformat="{&quot;2&quot;:803,&quot;3&quot;:{&quot;1&quot;:0},&quot;4&quot;:{&quot;1&quot;:2,&quot;2&quot;:14281427},&quot;8&quot;:{&quot;1&quot;:[{&quot;1&quot;:2,&quot;2&quot;:0,&quot;5&quot;:{&quot;1&quot;:2,&quot;2&quot;:0}},{&quot;1&quot;:0,&quot;2&quot;:0,&quot;3&quot;:3},{&quot;1&quot;:1,&quot;2&quot;:0,&quot;4&quot;:1}]},&quot;11&quot;:4,&quot;12&quot;:0}">Bitcoin (BTC) is a peer-to-peer cryptocurrency, originally described in a 2008 paper by the pseudonymous Satoshi Nakamoto. Launched in January 2009, it was the world’s first cryptocurrency, and remains the most popular, with the highest market capitalization of all cryptocurrencies.</span>

Bitcoin was built on several key innovations. Firstly, Nakamoto guaranteed that Bitcoin transactions were immutable, by recording all transactions on a distributed ledger known as a blockchain. Secondly, he ensured Bitcoin’s scarcity by capping the total number of Bitcoin in existence at 21 million. Finally, the community was incentivized to verify transactions by receiving rewards in the form of “mined” Bitcoin for checking the accuracy of the blockchain.

Bitcoin

Bitcoin (BTC) is a peer-to-peer cryptocurrency, originally described in a 2008 paper by the pseudonymous Satoshi Nakamoto. Launched in January 2009, it was the world’s first cryptocurrency, and remains the most popular, with the highest market capitalization of all cryptocurrencies.

Bitcoin was built on several key innovations. Firstly, Nakamoto guaranteed that Bitcoin transactions were immutable, by recording all transactions on a distributed ledger known as a blockchain. Secondly, he ensured Bitcoin’s scarcity by capping the total number of Bitcoin in existence at 21 million. Finally, the community was incentivized to verify transactions by receiving rewards in the form of “mined” Bitcoin for checking the accuracy of the blockchain.

Fidelity Digital Assets provides crypto custody services. Image: Shutterstock

<ul>
<li>Fidelity Digital Assets is partnering with blockchain startup BlockFi.</li>
<li>The partnership will give customers the option to use Bitcoin as a collateral against cash loans. </li>
<li>Bitcoin volatility will be managed by BlockFi with cash worth 60% of a loan backed by the digital asset. </li>
</ul>

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Fidelity Digital Assets will partner with BlockFi to give its customers the option to use Bitcoin as a collateral against cash loans.

Fidelity Digital Clients Can Now Use Bitcoin for Cash Loans

The crypto wing of Fidelity is partnering with BlockFi to give hedge funds and other institutional clients the option to use Bitcoin as collateral.

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