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.

2 min read

Dec 9, 2020

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.

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.

Get crypto news straight to your inbox--

sign up for the Decrypt Daily below. (It’s free).

Get Email!

7 Million UK Adults Now Own Crypto: Financial Conduct Authority

UK regulator the Financial Conduct Authority (FCA) has released new research revealing that 12% of UK adults now own crypto, up from 10% in previous findings. According to the nationally representative study of 2,199 UK adults, the figure extrapolates to 7 million UK crypto holders, up from 5 million in 2022. The average value of crypto held by people has increased over the same period, from £1,595 to £1,842. Among crypto holders, the number of adults holding more crypto has increased, too—with...

How NFTs are Evolving to Add ‘Meaning and Story’: RARI Chain

Non-fungible tokens (NFTs) are evolving to create more “value and utility” for their creators and users, according to a recent panel discussion on "Navigating the Evolving NFT Landscape" at the TEN by RARI x Refraction event in Bangkok. While the creator economy is the “flagship use case” of NFTs for consumers and retail, “There's going to be a lot of other applications of NFTs which are just in the backend,” Jana Bertram, Head of Strategy at RARI Foundation, told Rug Radio creator Pukerainbow....

Peanut Pet Owner Launches New Token, Threatens Lawsuit Against Crypto Community

Less than a month after the story of Peanut the squirrel and Fred the raccoon broke headlines, Mark Longo, the owner of the two pets whose tragic deaths caused a public outcry and spurred a movement, has launched his own token. Longo spoke in a Twitter video about how he came to process the story of Peanut and Fred and has decided to launch a new token on Solana called Justice for Pnut and Fred (JUSTICE) to honor the memory of his pets. "The government's not gonna get away with this," Longo sai...

News

Courses

Deep Dives

Coins

Videos